Renren Price Target Lowered to $3.90 at Barclays Capital (RENN) - InvestingChannel

Renren Price Target Lowered to $3.90 at Barclays Capital (RENN)

Research analysts at Barclays Capital dropped their target price on shares of Renren (NASDAQ: RENN)

The analysts wrote, ?Although the results were slightly better than we expected, management guided for 1Q13 to be slightly below Bloomberg consensus, which we believe is mainly from 1) the lack of new games during the quarter and 2) continued softness in advertising due to seasonality and the lag of the ad sentiment rebound. Based on its preliminary visibility, Renren said that its revenue for 2013 will rise at similar rate as 2012 of about 49%, driven by somewhat by a rebound in ad revenue and continued strength for online gaming but said that is commitment to investing in mobile, Nuomi and 56.com could lead to continued operating losses nearterm. We see its cash balance of US$905mn, or US$2.40 per share, as providing downside support and believe mid-term catalysts could come from earlier-than-expected profitability for Nuomi and 56.com.? Shares of Renren traded down 1.30% during mid-day trading on Monday, hitting $3.03. Renren has a 52 week low of $2.85 and a 52 week high of $7.87. The stock?s 50-day moving average is currently $3.21. The company?s market cap is $1.140 billion.

Renren last released its earnings data on Monday, March 11th. The company reported $0.11 earnings per share (EPS) for the quarter, beating the consensus estimate of ($0.07) by $0.18. The company had revenue of $48.80 million for the quarter, compared to the consensus estimate of $46.41 million. During the same quarter last year, the company posted $0.11 earnings per share. Renren?s revenue was up 48.8% compared to the same quarter last year. On average, analysts predict that Renren will post $-0.19 earnings per share for the current fiscal year.

Separately, analysts at Zacks downgraded shares of Renren from a ?neutral? rating to an ?underperform? rating in a research note to investors on Tuesday, January 15th. They now have a $3.60 price target on the stock.

One analyst has rated the stock with a buy rating, and eight have given a hold rating to the company?s stock. Renren presently has a consensus rating of ?hold? and a consensus price target of $4.42.

Renren Inc. operates real name social networking Internet platform in the People’s Republic of China.