UPDATE: Maxim Group Upgrades Renren to Hold on Price Depreciation

Maxim Group raises its rating on Renren

from Sell to Hold and removes its $4.50 price target. Maxim Group comments, "RENN's share price declined more than 20% since the company reported its 1Q12 results, mainly due to the weak performance of its arguable U.S. counterpart, Facebook (FB, $28.15, NR). At current levels, RENN is trading closer to its cash and book value at the end of March 2012, $2.70/share and $3.08/share, respectively. Despite RENN's fundamentals remain weak, y/y declining ad revenue, increasing reliance on game revenue, low visibility on outcomes of current heavy investment, and uncertainty of timeline to profitability, we believe RENN should trade above its cash level given its sizable user base and a series initiatives in building mobile social networks. The current price level is supported by our DCF analysis." RENN closed at $4.55 on Wednesday.