Market Overview

Brean Murray Initiates Coverage of Yongye International With Hold Rating, Does Not Name PT

Share:
Related YONG
Yongye International, Inc. Updates On Status Of Amended Going Private Transaction
Benzinga's M&A Chatter for Wednesday April 9, 2014

In a report published earlier today, Brean Murray, Carret & Co. initiated coverage of Yongye International, Inc. (NASDAQ: YONG) with a Hold rating, but did not name a price target.

Brean Murray went on to say “Since the beginning of 2011, Yongye has been regarded as a battleground stock in China's reverse takeover (RTO) space. On the one hand, it has garnered support in Asia's private equity arena (notably, Morgan Stanley's $50M investment in YONG) while, on the other hand, it is a favored short‐sale play by hedge funds. We consider the company a niche player in the fast‐growing Chinese agriculture market, and we like its unique selling strategy and attractive growth prospects. However, we see a disconnect between YONG's potential for sizable earnings growth and its current weak OCF owing to a substantially extended A/R cycle. This imbalance, consequently, keeps us on the sidelines for now; we foresee a buying opportunity once the company can generate sustainable OCF to support the stock price.”

Yongye International, Inc. closed on Friday at $3.15.

Posted-In: Brean Murray Carret & Co.Analyst Color Initiation Analyst Ratings

 

Related Articles (YONG)

View Comments and Join the Discussion!

Latest Ratings

StockFirmActionPT
SIXKeyBancDowngrades0.0
CBBMorgan StanleyUpgrades10.0
GDCredit SuisseDowngrades184.0
GEOJP MorganDowngrades26.0
TRUERBC CapitalDowngrades0.0
View the Latest Analytics Ratings
Don't Miss Out!
Join Our Newsletter
Subscribe to:
Market in 5 Minutes
Everything you need to know about the market - quick & easy.
Daily Analyst Rating
A summary of each day’s top rating changes from sell-side analysts on the street.
Fintech Focus
Your weekly roundup of hot topics in the exciting world of fintech.
Thank You
for registering for Benzinga’s newsletters and alerts.
• The Daily Analysts Ratings email will be received daily between 7am and 10am.
• The Market in 5 Minutes email will be received daily between 7am and 8am.
• The Fintech Focus email will be received every Friday between 2pm and 5pm.

Morning Market Movers

Europe gets EM Ultimatum as G20 Meet