Deutsche Bank released its investment report today to downgrade its software stock to hold

Summary: View the latest quotes Beijing time August 29 Evening News, Deutsche Bank released its investment report today, the German software stock (NASDAQ:AMAP) rating from Buy to hold, the target price to 11.90 U.S. dollars. The following is a summary of the contents of the report: the second

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Beijing Time August 29 Evening News, Deutsche Bank released its investment report today, the German software stock (NASDAQ:AMAP) rating from "buy" to "hold", the target price lowered to 11.90 U.S. dollars.

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

The second-quarter results were disappointing, with revenues 8% lower than expected and 13% lower than Wall Street's expectations. The software announces that it will provide mobile navigation applications free of charge in response to the Baidu Challenge. We expect that this will lead to a 20% loss of revenue for the 2014 fiscal year, while the commercialization model of lbs still takes a long time to explore. But with ample cash and Alibaba's investment, the long-term outlook for the company's software remains bright.

Mobile market competition is fierce: in addition to embedded navigation (In-dash navigation) business year-on-year decline of 23%, the German software in the mobile LBS market competition prospects are worrying. Although the number of mobile applications installed increased to 137 million, monthly active users continued to decline. Rival Baidu, meanwhile, won 2% per cent of its market share to 24%, while the market share of Gould's software increased 1% to 31% per cent.

Mobile phone pre-installed revenue decline: In the embedded navigation business downturn, the German software mobile pre-installed navigation solution revenue also fell. The business was the core driver of the company, and now it has become a stumbling block. To this end, we expect that before the commercialization of lbs, the German software will experience a decline in revenue and profits.

Adjustment of performance expectations: We will be the German software 2013 and 2014 fiscal year revenue forecasts are cut by 8% and 40% respectively.

Valuation: We downgraded the "buy" to "hold" and lowered the target stock price by 21% to 11.90 dollars.