Deutsche Bank will raise the search room to a target price of 14.7 dollars

Beijing time October 13 Evening News, Deutsche Bank released its investment report today, the SouFun stock (Nyse:sfun) rating from "Hold" to "buy", the target price from 12.40 U.S. dollars to 14.70 dollars.

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

Faced with fierce competition in the online real estate market and a sluggish macroeconomic environment, SouFun's long-term growth prospects are challenged, but not dangerous. Moreover, SouFun has recently taken some proactive measures to refine its business model to help ensure the company's sustainable growth. We acknowledge that SouFun's third-quarter results may be slightly sluggish, but the rising operational capacity and strong business model will be reflected in share prices. To this end, we have SouFun stock rating from "Hold" to "buy", the target share price from 12.40 U.S. dollars to 14.70 dollars.

Signs of recovery in China's real estate market: In the third quarter, there were some signs of recovery in China's real estate market: 1 The central bank loosened mortgages; 2 of our data show strong sales figures for major property developers in September. But at the same time we found that the competition in the lower-level cities is becoming more and more intense.

Strategic adjustment to cope with competition: this year, soufun a series of strategic adjustments, including the real estate agent strategic investment, the adjustment of E-commerce model. In the fierce market competition, SouFun is changing from a simple e-commerce coupon form to a one-stop platform for developers, providing a range of services such as advertising and e-commerce value-added solutions. Although it is still in its infancy, we believe that SouFun will win more market share through these vertical areas of expansion.

Adjustment of performance expectations: We maintain the SouFun 2014 fiscal year results are expected to remain unchanged, but the 2015 and 2016 fiscal year revenue forecasts are set to increase by 4% and 9% respectively, the operating profit margin is expected to lower 1%, the diluted earnings per share is expected to increase by 2% and 6% respectively.

Valuation: We set the SouFun stock rating from "Hold" to "buy" to increase the target share price from 12.40 US dollars to 14.70 dollars. (Li Ming)