Oppenheimer Initiates Dangdang At Perform

Oppenheimer has published a research report on Dangdang, Inc. (NYSE: DANG) and has initiated coverage with a Perform rating.

In the report, Oppenheimer writes "We are initiating coverage of E-Commerce China Dangdang (DANG) with a Perform rating. China's largest business-to-consumer online bookseller, DANG has a growing presence in general merchandise and is also a marketplace platform for third-party merchants. The company is positioned to further gain market share within China's fragmented book sector while benefiting from secular tailwinds. That said, competition is increasing rapidly with both large online and traditional offline retail players crowding into the B2C sector with heavy investments and infrastructure expansion. The stock is trading at ~124x our FY12 non-GAAP EPS estimate of $0.23 with a FY12E PEG of 1.9x. While we are bullish on DANG's outlook, currently the stock is fairly valued, in our view."

Dangdang closed Friday at $30.35.