UPDATE: Barclays Lowers PT on Renren Following Revised Estimates

In a report published Tuesday, Barclays Capital analyst Alicia Yap reiterated an Equal-Weight rating on Renren

, but slightly lowered the price target from $3.90 to $3.60. In the report, Yap noted, “We maintain our EW rating and lower our DCF-based 12-month price target to US$3.60 as we revise our estimates after 1Q13 results and 2Q13 guidance. Although the results were slightly better than we expected, management guided for 2Q13 to be slightly below Bloomberg consensus, which we believe is mainly due to: 1) adjustment and transition into launching Android-based mobile games; and 2) continued softness and increased competition in advertising. We revise our 2013 revenues by -8.4% to reflect slower top-line growth. We see its cash balance of US$855mn, or US$2.26 per share as providing downside support and believe mid-term catalysts could come from earlier-than-expected profitability for Nuomi and 56.com as well as traction from Android-based model games.” Renren closed on Monday at $2.99.