UPDATE: Jefferies Downgrades Renren to Underperform, Lowers PT as Near-Term Turnaround is Not Expected

In a report published Friday, Jefferies analyst Cynthia Meng downgraded the rating on Renren RENN from Hold to Underperform, and lowered the price target from $3.30 to $2.90. In the report, Jefferies noted, “3Q13 revenue came in 1.3% below consensus, driven by lackluster display ads and delayed game launch. 4Q13 guidance is 36%-40% below Street. We do not foresee a near-term turnaround in games and expect monetization challenges to remain. Downgrade to Underperform, PT revised down by 11% to US$2.90 based on net cash/share of US$2.85.” Renren closed on Wednesday at $3.35.