UPDATE: Deutsche Bank Raises PT on SouFun Holdings on Good 1Q Operations

In a report published Wednesday, Deutsche Bank analyst Alex Yao reiterated a Buy rating on SouFun Holdings

, and slightly raised the price target from $30.00 to $31.00. In the report, Yao noted, “Our recent discussion with management suggests SouFun's 1Q operation is progressing well. We attribute management's upbeat tone to the imminent introduction of property capital gains tax, which pushes demand for transaction of properties into 1Q. Usually such a strong demand is not a good operating environment for SouFun. However, we believe 1) SouFun card has proven a cost-efficient way to sell property and is adopted by more developers for more projects; 2) competition among agencies raises demand for listing services. We expect 1Q revenue to grow 42% YoY with potential upside.” SouFun Holdings closed on Tuesday at $23.71.