Analyst: China Internet Investors To See FY15 Gains

Loading...
Loading...
Chinese Internet investors will benefit from mergers, mobile advertising and the newly minted banking licenses, an analyst said Wednesday. Credit Suisse's Dick Wei generally likes the look of about 30 companies in the sector, but said instead of thematic investment, stock selection will become increasingly important. Wei's top large-caps picks: Baidu Inc.
BIDU
and Tencent Holdings
TCEHY
. Among smaller players, Wei likes YY Inc.
YY
, 58.com Inc.
WUBA
and NetEase Inc.
NTES
. Wei also upgraded the online travel concern Tuniu Corp.
TOUR
to Out Perform, from Neutral and game maker Igg Inc. (HKG:8002) to Neutral from Under Perform. Although Credit Suisse's China Internet Index was up 20 percent last year, in line with the Nasdaq Composite, the measure is 80 percent weighted to Alibaba Group Holding Ltd.
BABA
Loading...
Loading...
, Baidu and Tencent. Excluding the Big Three, the measure actually fell 5 percent. Qihoo 360 Technology Co Ltd.
QIHU
, Sina Corp.
SINA
and Sohu.com Inc.
SOHU
saw particularly painful declines. In spite of a slow-down in the Chinese economy, Wei expects investor interest to likely come back to the sector in 2015 with the emergence of new business models. Those new models include banking and so-called online-to-offline marketing which aims to drive online consumers to brick-and-mortar stores, Wei said.
Loading...
Loading...
date
ticker
name
Price Target
Upside/Downside
Recommendation
Firm
Posted In: Analyst ColorUpgradesDowngradesAnalyst Ratings
We simplify the market for smarter investing

Trade confidently with insights and alerts from analyst ratings, free reports and breaking news that affects the stocks you care about.

Join Now: Free!

Loading...