Deutsche Bank Maintaining Buy On E-House (EJ)

Deutsche Bank is maintaining its Buy rating and $17 price target on shares of E-House EJ.

In a note to clients, Deutsche Bank writes, "E-House may continue to be hit by the government's tightening measures. However, we believe its asset-light model is the most defensive in the credit-tightening environment. Unlike developers, it does not bear construction capex or the risk of holding a landbank. Therefore it is exposed to little liquidity risk, in our view. Moreover, trading at the lower end of its valuation band since its listing and with cash-on-hand of US$6.86/share, or close to 60% of the current share price, further downside looks limited. Maintain Buy but lower price target to US$17."

Shares of EJ gained 11 cents yesterday to close at $11.76, a gain of 0.94%.