Renren (NASDAQ:RENN) was downgraded by equities research analysts at Jefferies Group from a “hold” rating to an “underperform” rating in a research note issued to investors on Thursday, TheFlyOnTheWall.com reports. They currently have a $3.30 target price on the stock, up from their previous target price of $2.70. Jefferies Group’s price target indicates a potential downside of 21.43% from the company’s current price.
The analysts wrote, “Weak 2Q13 results were in-line with preliminary announcement. 3Q13 guidance is 24-27% below Street. Softness in games to remain as new games face intensive competition from larger platforms. Expect mobile ads monetization to come slow and Nuomi’s bleeding loss to remain. Downgrade to Underperform; revise PT up to USD3.3 based on net cash per share of USD2.2 and USD405mn valuation of Renren’s core business. Upside risk comes from M&A and/or asset divestiture.”
Separately, analysts at Zacks downgraded shares of Renren from an “outperform” rating to a “neutral” rating in a research note to investors on Wednesday. They now have a $4.70 price target on the stock.
Two analysts have rated the stock with a sell rating and four have assigned a hold rating to the stock. Renren presently has an average rating of “Hold” and a consensus target price of $3.57.
Shares of Renren (NASDAQ:RENN) traded down 10.24% during mid-day trading on Thursday, hitting $3.7699. Renren has a one year low of $2.52 and a one year high of $4.63. The stock’s 50-day moving average is currently $3.36. The company’s market cap is $1.424 billion.
Renren Inc operates real name social networking Internet platform in the People’s Republic of China. Its platform enables its users to connect and communicate with each other, share information and user-generated content, play online games, listen to music, shop for deals and a range of other features and services.