Deutsche Bank Starts 58.com Inc (WUBA) at Buy

Deutsche Bank initiated coverage on 58.com Inc (NYSE: WUBA) with a Buy rating and a price target of $65. Analyst Alvin Jiang highlighted its superior growth rate and market leadership.

"58.com is the fastest growing company in the online advertising market in China, with revenue expanding five-fold in the next five years. Having merged with Ganji, it dominates the classified service market with an 80% market share and has 10m SME users compared to Baidu’s reach of 0.6m. Its coverage of over 200 cities, promoted by a workforce of 16,000 off-line sales staff has created a significant barrier to entry, while the co-operation with 23% owner Tencent is increasing its long term monetization potential. We forecast a strong shift in profitability to a 17% margin by 2018 and initiate with a BUY rating," said Jiang.

For an analyst ratings summary and ratings history on 58.com Inc click here. For more ratings news on 58.com Inc click here.

Shares of 58.com Inc closed at $47.52 yesterday.

You May Also Be Interested In

• Rosenblatt Starts CoreWeave (CRWV) at Buy
• Freedom Broker Starts M/I Homes (MHO) at Buy
• EQT Corp. (EQT) PT Lowered to $65 at Truist Securities