UPDATE: Piper Jaffray Color On DANG

Piper Jaffray, which raised its PT on shares of Dangdang Inc. (NYSE: DANG), is providing some color on the stock.

“While DANG shares are down 26% since reporting Dec. qtr earnings Mar. 9 on heightened competition impacting margins, we see this as as a buying opportunity for long-term investors,” Piper Jaffray writes. “eCommerce in China remains one of the top global growth opportunities over the next decade, and Dangdang is well positioned to capitalize.

“Competition for eCommerce customers in China is getting more intense, which has caused customer acquisition costs to rise. Dangdang is taking a page out of Amazon's book by shifting spending from traditional marketing to improving the shopping experience, which we believe over time is the right strategy to drive rev growth. Lowering our PF op. income ests. to be inline with the Street while maintaining our rev ests.”

Dangdang closed Monday at $18.91.