UPDATE: Morgan Stanley Lowers PT on CNInsure on Short-term Margin
In a report published on Tuesday, Morgan Stanley analyst Ben Lin lowered the price target on CNInsure (NASDAQ: 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.
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