Piper Jaffray Maintains Overweight, $16 PT on Dangdang
Piper Jaffray reiterates its Overweight rating and $16 price target on E Commerce China Dangdang (NYSE: DANG) as the company is seen to be well positioned in the nascent China e-commerce space.
Piper Jaffray comments, "We remain comfortable with our Dec revenue estimate of $182m vs. the Street at $183m and our EPS estimate of ($0.17) inline with the Street, and expect these results to be a slight positive for shares. Importantly, we remain comfortable with our 50% revenue growth in 2012. The expense side in 2012 remains a wild card given the shifting competitive environment, but we believe spending to promote revenue growth is the right decision at this stage of the market."
DANG closed at $4.66 per share on Wednesday.
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