UPDATE: Deutsche Bank Lowers PT on E-House (China) Holdings Limited on Operations Improvement
In a report published Thursday, Deutsche Bank analyst Jason Ching reiterated a Buy rating on E-House (China) Holdings Limited (NYSE: EJ), but lowered the price target from $9.50 to $6.10.
In the report, Ching noted, “Over the past two years, E-House's financial performance was severely hit by volatile market conditions and heavy initial investments/costs associated with its online businesses. Following a series of cost restructuring and implementation of cost-saving measures, alongside a sustained recovery in the primary agency unit, operations saw a strong sequential improvement in 4Q12. On the back of the rather mild impact on primary sales volume from recent policy noises, we expect E-House's overall operating environment to remain favorable ahead. In particular, we expect a further improvement in operating leverage to drive a recovery of financial performance in FY13. Maintain Buy.”
E-House (China) Holdings Limited closed on Wednesday at $4.82.
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