In a report published Friday, Oppenheimer reiterated its Outperform rating and $9.50 price target on Dangdang (NYSE: DANG [FREE Stock Trend Analysis]).
Oppenheimer noted, “DANG reported 4Q12 revenue of $259M and non-GAAP EPADS of ($0.24), roughly in line with consensus estimates. Margins expanded y/y for the second quarter. We expect operating margins to improve y/y through 2013 given operating leverage as its marketplace and self-procurement categories gain scale. Management guided 1Q13 revenue of ~$209M (~21.5% y/y), below consensus estimate of $226M. We're lowering our 2013 revenue and non-GAAP EPADS to reflect moderating growth but higher margin assumptions. While we expect the stock to remain range-bound due to still limited earnings visibility, its valuation remains attractive, trading at ~0.