UPDATE: Oppenheimer Downgrades Jiayuan.com on Valuation
In a report published Friday, Oppenheimer analyst Andy Yeung downgraded the rating on Jiayuan.com International Ltd. (NASDAQ: DATE) from Outperform to Perform, and removed the $7.00 price target.
In the report, Oppenheimer noted, “For most of the past year we have argued that DATE was worth 13x forward P/E, net of net cash of ~$3/ADS. The stock is now trading at ~22x 2014E P/E (~13x, net of cash). We believe that further multiple expansion would need to be driven by sustained improvement in sales growth and margins. While DATE has a number of initiatives to potentially achieve this, particularly with its mobile and personalized matchmaking services, management 3Q13 guidance and current margin trajectory suggest that a sustained rebound in growth and margins may not be possible until 2014. DATE reported roughly in-line 2Q13 results but its 3Q13 guidance was below expectations. We're lowering our 3Q13 and forward sales and earnings estimates.”
Jiayuan.com International Ltd. closed on Thursday at $7.63.
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