Rodman & Renshaw Maintains China Valves Technology Market Outperform, Lowers PT

Rodman & Renshaw maintained its China Valves Technology CVVT Market Outperform rating and lowered its China Valves Technology price target to $10 in a research report published today. In the report, Rodman & Renshaw states, "The stock is currently trading at only 2x the company's 2011 EPS, which we believe represents a very attractive valuation. That being said, we continue to experience a multiple compression environment for small-cap Chinese RTO companies in the U.S. capital market, and China Valves' pending auditor change and litigations remain unresolved issues. In light of these, we believe it is prudent to slightly trim the multiple used to value the company." Shares of China Valves Technology closed today at $2.64, down 3.30% from Monday's market close.