BofA Merrill Lynch aims to keep everyone neutral rating 3.9 dollars

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Beijing Time August 16 Evening News, BofA Merrill Lynch today issued an investment report to maintain the Nyse:renn "neutral" rating, the target share price from 3.5 U.S. dollars to 3.9 dollars.

The following is a summary of the contents of the report:

Mobile game latency leads to uncertainty: everyone's second-quarter revenue is 11% lower than the guiding expectations of the median, largely dragged down by some of the game's delays. We believe that this will not only affect the next few quarters of revenue, but also reflects the fierce competition between mobile game developers. We expect the 2013-year game revenue to be flat year-on-year, with an increase of 13% next year. In 2014, the proportion of game revenue to total revenue fell from 51% last year to 40%. The network advertising business continues to slump, mainly because the flow of traffic from the PC to mobile devices, as well as the number of users basically flat. In the second quarter, everyone increased by 10 million active users, monthly active users fell 5%. glutinous rice Net (group purchase) and I show (video program) growth quickly, but not yet profitable. Everyone reiterates that they will continue to be committed to group buying business. We believe that the group buying market exists mergers and acquisitions and strategic cooperation opportunities.

Adjustment of performance expectations: We will be everyone in the 2013 fiscal year and 2014 revenue forecasts, respectively, reduced by 22% and 33%, to reflect the game and the advertising market fierce competition. But the forecast for fiscal year 2014 will be adjusted to 2 cents to 9 cents per share, because we expect the sticky rice net spending to fall next year.

Valuation: We continue to maintain a "neutral" rating for everyone, bringing the target share price from USD 3.5 to $3.9. (Li Ming)