UPDATE: Oppenheimer Lowers PT on Renren on Limited Earnings Visibility

In a report published Tuesday, Oppenheimer reiterated its Outperform rating on Renren Inc. RENN and lowered price target from $8.00 to $6.50. Oppenheimer reported that, “RENN's 4Q results surpassed our and consensus estimates. Revenue growth was mainly driven by solid gaming and group-buying growth partly offset by declines in ad revenue. Margins contracted year/year mainly on higher headcounts and continued investments in mobile game, Nuomi and 56.com. Management guided to 1Q13 revenue of $44-46M. While guidance was below consensus, we're raising our 2013 estimates to reflect better than expected 4Q sales and margin momentum. However, given the limited visibility into its growth and margin trajectory as its users migrate to mobile and its revenue mix shifts to gaming, we're lowering our price target from $8.00 to $6.50, based on a valuation of ~$28 per active user.” Shares of Renren Inc. closed at $3.07 on Monday.