UPDATE: Credit Suisse Initiates Coverage on Sungy Mobile on Undervalued Mobile Traffic Owner

In a report published Wednesday, Credit Suisse analyst Dick Wei initiated coverage on

with an Outperform rating and $23.00 price target. In the report, Credit Suisse noted, “Unique traffic owner in global mobile internet. We initiate GOMO with an OUTPERFORM rating and a target price of US$23, implying 34.7% potential upside. With a reach of 87 mn Monthly Active Users and good user engagement, GO's series (mobile apps series of GOMO) of apps offer strong distribution capability of third-party Android apps globally. In particular, GOMO's leading position in the Android launcher market and Google Play serve as a valuable entry point for domestic Internet companies to expand overseas.” Sungy Mobile closed on Tuesday at $16.52.