UPDATE: Deutsche Bank Upgraded Phoenix New Media to Buy on Expected Earnings Growth Recovery

Deutsche Bank upgraded Phoenix New Media

from Hold to Buy and raised the price target from $3.65 to $4.87. Deutsche Bank noted, "We expect Phoenix New Media's EPS growth to recover to 27% in 2013 (up from our previous forecast of 3%), following a 44% decline in 2012. This recovery should be driven by 1) an improved online ads outlook fueled by video ads, mobile ads and F&B ad recovery; 2) new paid service initiatives gaining traction (e.g. webgames, Video VAS, etc); and 3) a cost-conscious investment approach in 2013. We view the current stock price (14x 2013E PE or 5x excash 2013E PE) as attractive for investors seeking exposure to China's anticipated ad recovery in 2013." Phoenix New Media closed at $3.91 on Thursday.