UPDATE: Piper Jaffray Maintains Overweight on Sky-mobi, But Reduces PT

In a report published Monday, Piper Jaffray maintained its overweight rating on Sky-mobi Limited (NASDAQ: MOBI), but reduced its price target on the stock from $3.20 to $2.94.Piper Jaffray noted, "While Sky-mobi continues to work through the transition to smartphones and is seeing a double-digit y/y decline in its business, we continue to believe there is a place for third party mobile application stores in China. We believe that the market for applications in China is different from many markets in the rest of the world and, as a result, believe Sky-mobi can coexist with the Google Play store on Android. However, given the current meaningful decline in the business, while we are keeping our Overweight rating, we are adjusting our price target to $2.94, which is the current value per share the company holds in cash and deposits. We believe that it may not be until late next year that MOBI sees financial impact from its focus on the smartphone sector, thus the decline to overall numbers is likely to continue over the next few quarters."Sky-mobi closed at $1.96 on Monday.