Citi: Time To Buy 51job

In a report published Friday, Citi analyst Thomas Chong initiated coverage of 51job, Inc. (ADR) JOBS with a Buy rating and a price target of $40.60. 51job has been around for 15 years and has solid brand equity among jobseekers and employers as a leading online recruitment platform in China. The company covered more than 388,000 unique employers and recorded 84m registered user accounts as of 2014. Analyst Thomas Chong added that 51job has "solid execution with nationwide presence." In the report Citi noted, "We believe 51job will focus on strengthening product offerings and customer acquisitions, with sales force additions likely to be modest compared to the past two years. We expect 51job to segment its product offering by tailoring to the needs of white collars employees at different stages of their career development. This in turn should further enhance its relevancy and add value to employers." Chong estimates the company's total revenue to grow 10 percent in 2015, with the number of unique employers up 10 percent and ARPU remaining unchanged.