UPDATE: Bank of America Cuts PT to $3.50 on Renren; Ad Business in Transition

Bank of America maintained Renren

with a Neutral rating and lowered the price objective from $4.10 to $3.50. Bank of America noted, "4Q12 result showed diverging trends across its biz lines that were similar to the past couple of quarters. Its webgame platform (53% of 4Q12 sales) continued to grow fast as it benefited from the fragmentation of webgame developers and its SNS user base that enabled it for cross-selling. On the other hand, its ad business (26% of 4Q12 sales) was in a transition as user traffic moved to mobile and other social platforms like Sina Weibo and Tencent various SNS started to monetize and compete for ad budgets." Renren closed at $3.07 on Friday.