UPDATE: Morgan Stanley Reiterates on Renren Following 4Q13 Results
In a report published Wednesday, Morgan Stanley analyst Timothy Chan reiterated an Underweight rating on Renren (NYSE: RENN), but removed the $2.70 price target.
In the report, Morgan Stanley noted, “We retain our UW rating after RENN's 4Q13 results. 4Q13 revenues were US$31mn, down 25% QoQ and 29% YoY. Due to mobile cannibalization, its ad sales dropped 32% QoQ and 18% YoY, while its game sales decreased 23% QoQ and 40% YoY. Excluding Nuomi, operating loss expanded to US$43mn, vs. -US$25mn in 3Q and -US$23mn a year ago. Net loss from continuing operations was US$28mn, vs. -US$14mn in 3Q and -US$16mn a year ago. Renren's monthly active users declined for the third consecutive quarter, down 10% QoQ and 20% YoY to 45mn in December 2013. The company acknowledged the intense competition from the market leader, which we believe is Tencent's Weixin (WeChat).”
Renren closed on Tuesday at $3.77.
Latest Ratings for RENN
|Aug 2014||Bank of America||Maintains||Underperform|
|May 2014||Bank of America||Downgrades||Underperform|
© 2017 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.