UPDATE: Bank of America Retains Buy SouFun, Raises PO

In a report published Monday, Bank of America retained its Buy rating on SouFun Holdings Ltd.

, but raised its price objective from $20 to $22.90. Bank of America noted, "Our DCF based Price Objective of US$22.9 is based on US$2.3 net cash per share, a 12.2% discount rate, and terminal growth of 3%. We calculate the discount rate based on a long-term risk-free rate of 4.2%, post-war equity risk premium of 5% in then US market where the stock is listed, and historical beta of 1.6 as a proxy to capture the stock volatility contribution to the market portfolio. We prefer to leave non-systematic risks to be reflected in financial forecasts, using sensitivity tests or expected averages if necessary. The risk to our price objective is a potential slowdown in the card business." SouFun closed at $18.38 on Monday.