UPDATE: Oppenheimer Reiterates on E-Commerce China Dangdang Following Mixed 3Q Results, Better-Than-Expected 4Q Guidance

In a report published Monday, Oppenheimer analyst Andy Yeung reiterated an Outperform rating on

, and raised the price target from $9.50 to $11.00. In the report, Oppenheimer noted, “DANG reported mixed 3Q results, but provided better than expected 4Q revenue guidance. Margins continued to improve y/y for the fifth consecutive quarter, leading to the highest gross and operating margins since 1Q11. We expect DANG's operating margin to turn positive again by 2Q14. We're raising our revenue and non-GAAP EPADS estimates to reflect management's guidance and higher margin assumptions. We're also raising our price target from $9.50 to $11.00 on higher estimates and market multiples. DANG's valuation remains attractive, trading at ~0.6x 2013E EV/Sales, especially given its strong brand and leadership position (No. 1 online bookstore, No. 3 B2C e-tailer, and No. 5 B2C ecommerce website).” E-Commerce China Dangdang closed on Friday at $10.34.