UPDATE: CICC Cuts PT to $5 on Taomee on Low Monetization

CICC reiterated its Buy rating on Taomee

and reduced its price target to $5 a share. CICC said, "Enriched product line, but low monetization strategy continues. Given the fierce online competition, Taomee is continuing with its low monetization strategy to increase user growth and engagement. The strategy has proved effective with a record high of active accounts in 3Q12. Going forwards, Taomee will develop and add more online games with relatively high ARPU to its existing product portfolio." Taomee closed at $3.43 on Friday.