Oppenheimer Lowers PT On CCIH To $26

Oppenheimer, citing lower earnings estimates, has lowered its price target from $28 to $26 and maintains its Outperform rating on ChinaCache International

. According to Oppenheimer, “CCIH's 1Q11 revenues came in at $21M, above our and consensus estimates of $20M while pro forma earnings per ADS were a penny below our and consensus estimates of $0.08. Management's 2Q11 sales guidance of $22.0-22.8M was also significantly above our prior and consensus estimates. Sales growth was fairly strong across the board. Margins expanded q/q but were flattish y/y with better economies of scale partly offset by lower ASPs and higher bandwidth and other infrastructure costs. We are revising our forward estimates to reflect both higher sales and higher cost assumptions.” CCIH closed yesterday at $15.10.