Credit Suisse maintains when target price for neutral rating is lowered to 8.9 USD

Sina Science and technology news Beijing time, November 16 morning, Credit Suisse published a study today to maintain when the (micro-BO) net Stock "neutral" rating, the target share price from 13.0 U.S. dollars to 8.9 U.S. dollars. The following is a summary of the report: September 23, Dangdang launched the "3C product Suicide price" promotional campaign, and called it "decapitation operations." The purpose of this promotional campaign is to provide users with better service and more choices.　　Dangdang offers a number of digital products prices are lower than the Jingdong (micro-BO) mall's product prices. To celebrate the 12 anniversary, Dangdang has a large discount on books, cosmetics, food and digital products. The user purchases the amount of RMB 99 yuan, will get the RMB 20 Yuan cash coupon, the shopping amount is full of RMB 199 yuan, will obtain the renminbi 50 Yuan cash coupon.　　Dangdang has launched a large-scale marketing campaign, such as advertising on buses. Dangdang is currently in talks with a number of world-renowned brands, hoping to establish cooperation, and to attract users, will provide a substantial discount on these luxuries.　　In view of the price war and large-scale marketing activities, we expect that Dangdang will have high losses in 2011 and 2012. Therefore, under the DCF valuation method, we lowered the Dangdang target share price from 13.0 US dollars to 8.9 US dollars. We anticipate that Dangdang's share price will remain at its current level. We maintain a "neutral" rating on the Dangdang stock. (OAK)