Zacks Investment Research Lowers 58.com (WUBA) to Sell

Zacks Investment Research downgraded shares of 58.com (NYSE:WUBA) from a hold rating to a sell rating in a research report released on Friday morning.

According to Zacks, “58.com Inc. operates online marketplace serving local merchants and consumers in China. It offers housing rental, recruitment, second-hand product, travel, catering, entertainment, and group-buying information. 58.com Inc. is based in Beijing, China. “

Several other equities analysts have also commented on WUBA. TheStreet upgraded 58.com from a c rating to a b- rating in a research note on Friday, August 17th. ValuEngine lowered 58.com from a buy rating to a hold rating in a research note on Thursday, August 23rd. CLSA reiterated a buy rating on shares of 58.com in a research note on Thursday, September 20th. Finally, Benchmark dropped their target price on 58.com from $96.00 to $85.00 and set a buy rating for the company in a research note on Friday, November 16th. One analyst has rated the stock with a sell rating, two have assigned a hold rating and three have given a buy rating to the company. The company presently has a consensus rating of Hold and an average price target of $88.50.

Shares of NYSE:WUBA opened at $58.06 on Friday. 58.com has a 52-week low of $52.14 and a 52-week high of $89.90. The firm has a market capitalization of $8.51 billion, a PE ratio of 43.65 and a beta of 1.77.

58.com (NYSE:WUBA) last issued its quarterly earnings data on Wednesday, November 14th. The information services provider reported $0.82 earnings per share (EPS) for the quarter, beating the Thomson Reuters’ consensus estimate of $0.62 by $0.20. The business had revenue of $527.20 million for the quarter, compared to the consensus estimate of $515.83 million. 58.com had a return on equity of 9.57% and a net margin of 16.13%. The business’s revenue was up 28.5% on a year-over-year basis. During the same period in the prior year, the business earned $0.49 earnings per share. As a group, sell-side analysts anticipate that 58.com will post 1.84 EPS for the current fiscal year.

Large investors have recently made changes to their positions in the business. American International Group Inc. acquired a new stake in 58.com during the third quarter worth about $118,000. Quantbot Technologies LP acquired a new stake in 58.com during the third quarter worth about $153,000. Redpoint Investment Management Pty Ltd acquired a new stake in 58.com during the third quarter worth about $207,000. Tower Research Capital LLC TRC increased its stake in 58.com by 59.1% during the second quarter. Tower Research Capital LLC TRC now owns 3,410 shares of the information services provider’s stock worth $236,000 after acquiring an additional 1,267 shares during the last quarter. Finally, Panagora Asset Management Inc. increased its stake in 58.com by 107.1% during the third quarter. Panagora Asset Management Inc. now owns 3,934 shares of the information services provider’s stock worth $290,000 after acquiring an additional 2,034 shares during the last quarter. Institutional investors own 60.23% of the company’s stock.

About 58.com

58.com Inc operates online classifieds and listing platforms that enable local businesses and consumers to connect, share information, and conduct business in the People's Republic of China. It operates multi-content category online classified platforms primarily under the 58 and Ganji names; and Anjuke, an online real estate listing platform.

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