In a report published on Tuesday, Morgan Stanley analyst Ben Lin lowered the price target on CNInsure CISG from $8.50 to $8.00, and maintained an Overweight rating.
In the report, Morgan Stanley stated, "Margin decline driven by increasing competition: Gross margin deteriorated 3pts q-q and 11pts y-y to 25.9% (lowest quarter since listing), owing to increasing commission expenses (+39% y-y) as competition from P&C insurers and telesales further intensified in 1Q. Management expects the margin to recover moderately in the following quarters, with 5% revenue growth in 2Q."
CNInsure closed at $6.43 on Monday.
© 2024 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.
Comments
Trade confidently with insights and alerts from analyst ratings, free reports and breaking news that affects the stocks you care about.