UPDATE: Oppenheimer Lowers ChinaCache's PT

According to a research report published earlier today, Oppenheimer has lowered ChinaCache International's

PT from $15 to $12.50. Oppenheimer commented in the report, “CCIH's 4Q revenues were in line but earnings missed expectations. Increases in bandwidth costs and OPEX continued to weigh on margins. Investments in R&D and network/bandwidth expansion and higher headcount point to potential operating losses in 1H12. 4Q revenue growth of 52% y/y was mainly led by online video and enterprise/e-commerce businesses. 1Q guidance of $28.3-29.1M trailed consensus of $30.1M. Our reduced estimates reflect more conservative growth and cost/expense assumptions. Investors were understandably disappointed with CCIH's lack of operating leverage on higher revenues, and it will take time for management to rebuild investor confidence.” Oppenheimer maintains its Outperform rating on ChinaCache, which is currently trading at $5.82.