Leju Holdings Ltd Stock Soars; Analysts Reaffirms Bullish Ratings

Leju Holdings Ltd Stock Soars; Analysts Reaffirms Bullish Ratings

The stock price of Leju Holdings Ltd (ADR) (NYSE:LEJU), an online-to-offline (O2O) real estate service provider in China climbed 10% to $17.89 per share as analysts reiterated their positive ratings for the stock. The increase was also driven by its strong second-quarter financial results.

Analysts’ stock ratings

Yesterday, analysts at Macquarie reiterated their Outperform rating for the shares of Leju Holdings Ltd (ADR) (NYSE:LEJU). They raised their price target for the stock from $16 to $22 per share, which represents a 35.38% upside to the current trading price of the company.

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On the other hand, analysts at JP Morgan Chase & Co. (NYSE:JPM) reaffirmed their Overweight rating for Leju Holdings Ltd (ADR) (NASDAQ:LEJU) with a price target of $19 per share.

Leju Holdings’ financial performance

Leju Holdings Ltd (ADR) (NASDAQ:LEJU) reported its second-quarter financial results on Wednesday, August 20. The Chines real estate company posted a non-GAAP net income of $24.1 million, up by 83% from $13.2 million in the year-ago quarter.

According to the company, its non-GAAP net income attributable to shareholders was $20.5 million of $0.15 in earnings per diluted American Depository Share (ADS), an increase of 75% from $115 million or $0.10 per diluted ADS last year.

According to Leju Holdings Ltd (ADR) (NASDAQ:LEJU), its revenue rose 63% to $117.4 million. During the quarter, the company’s revenue from e-commerce services increased 159% to $68.3 million. Its online advertising revenue climbed 11% to $44.8 million while its revenue from listing services dropped 15% to $4.2 million.

The company ended the second-quarter with $228.6 million in cash and cash equivalents.

In a statement, Mr. Geoffrey He, CEO of Leju Holdings Ltd (ADR) (NASDAQ:LEJU) said, “We have stayed focused on implementing our mobile strategy, which has allowed us to anticipate and address new market demands. Our Weixin Home Promotion launched in June received an overwhelmingly positive response, and we expect our recently launched mobile products for both e-commerce and listing services will further enhance our interaction with customers. “

Business outlook

Leju Holdings Ltd (ADR) (NASDAQ:LEJU) maintained its previous revenue guidance in the range of $500 million to $520 million for the full year 2014. Its revenue guidance represents a 49% to 55% increase from the $335.4 million in revenue it recorded in 2013.

“Going forward, Leju plans to continue its emphasis on O2O services and product innovation, and we look forward to cooperating with our partners to provide comprehensive products and services for our clients,” said Mr. He.

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