JPMorgan Chase will be downgraded to 6.5 US dollars when the rating falls to its target price

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Beijing time August 30 Evening news, JPMorgan announced its investment report today, the Dangdang (Nyse:dang) stock rating from "neutral" to "reduce", the target price from 4.30 U.S. dollars to 6.50 dollars.

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

We will increase the target share price from USD 4.30 to $6.50 when the stock rating is lowered to "reduce". We believe that competition with other e-commerce platforms, as well as competition in the vertical market will become the main challenge and risk for the next 12 months.

Profit margin: In the past two quarters, when the profit margin increased because of: 1 to the higher margin of the commodity sector expansion, such as apparel, 2 from the platform business contribution growth; 3 launched the flash-buy channel in May.

With the expansion of the platform business, competition pressure began to increase: the second quarter of this year revenue from the platform business growth of 178%, mainly because: 1 when white-collar, high-end user group: 2 2012 base is low. We believe that the further expansion of the platform business, the competition from each vertical area will intensify.

Flash Business: When the May launch of the flash-purchase channel, Alexa data restrictions, as of August 19, the channel for when the contribution of 6% of independent users. From a long-term point of view, we are optimistic about when the flash business; but in the near future, the contribution of the revenue may be limited, because: 1 and market leader only goods will be compared to when the current user base is not mainstream, 2 to establish brand awareness, and brand partners to establish good relations of cooperation, these will take time.

Valuation: We will increase the target share price from USD 4.30 to $6.50 when the stock rating is lowered from "neutral" to "reduced holdings".