UPDATE: Oppenheimer Moves Feihe International to Not Rated

Oppenheimer published a research report on Feihe International ADY and lowered its rating on the stock from Perform to Not Rated. In the report, Oppenheimer wrote, "On 10/3, ADY received a preliminary non-binding going-private proposal from chairman/CEO Mr. You-Bin Leng and an affiliate of Morgan Stanley Private Equity Asia at $7.40 (21.3% premium to 10/2 close price), to acquire all outstanding shares not owned by Mr. Leng, who currently owns 45.34%. We estimate $80M is needed to finance the deal, which is expected to be done through a combination of debt and equity. ADY's fundamental business is improving, with market share up to 5.2% (Exhibit 1) from 3-year low 3.6% in Jan. 2011. We move our rating from Perform to Not Rated, as we believe the shares will no longer trade on fundamentals and view current valuation at ~4.0x our 2013E EPS estimate as attractive." Oppenheimer also removed its price target on Feihe International, which is currently trading up 0.90 percent from Wednesday's $6.66 closing price.