JPMorgan upgrades Leju to Neutral on improving earnings outlook. JPMorgan analyst Binbin Ding last night upgraded Leju Holdings to Neutral from Underweight after assuming coverage of the name. The analyst raised his price target for the shares to $3.60 from $1.80. Ding expects Leju's earnings outlook to gradually improve as its revenue growth recovers and cost structure optimizes. However, he thinks it could take another two quarters of earnings delivery for the market to gain confidence in the company's earnings sustainability.
UP AFTER EARNINGS: Tilray (TLRY) up 13.6%... Shoe Carnival (SCVL) up 11.9%... Aviat Networks (AVNW) up 6.7%... Lannett (LCI) up 3.6%... NCI Building (NCS) up 3.5%... Prospect Capital (PSEC) up 3.1%... Hewlett Packard Enterprise (HPE) up 1.3%... ScanSource (SCSC) up 0.8%. ALSO HIGHER: Opiant Pharma (OPNT) up 44.5% after Emergent BioSolutions (EBS) purchase of Adapt Pharma and its Narcan sales disclosure, from which Opiant receives royalties... Leju Holdings (LEJU) up 4.1% after upgraded at JP Morgan... Emergent Biosolutions (EBS) up 1.2% after acquiring Adapt Pharma. DOWN AFTER EARNINGS: Box (BOX) down 5.6%... H&R Block (HRB) down 1.4%... ALSO LOWER: Assertio Therapeutics (ASRT) down 4.4% after disclosing patent infringement suit settlement... Tailored Brand (TLRD) down 3.4% after announcing CEO retirement and Q2 guidance.
Leju Holdings announced that Geoffrey He, Leju's CEO, has agreed to purchase an aggregate of 6,788,198 ordinary shares of the company, representing approximately 5% of the company's current total outstanding share capital, from E-House Holdings Limited, a principal shareholder of the company. The total consideration of the transaction is $9,299,831, equivalent to $1.37 per ordinary share or $1.37 per ADS, which represents the average closing price of the company's ADSs for the 30 consecutive trading days prior to June 27, 2018. This share purchase has been approved by Leju's Board and the shares purchased are subject to a three-year lock-up.
Reports Q1 revenue $81.5M, one estimate $77.9M. "I'm pleased that our businesses returned to a growth trajectory in the first quarter of 2018 despite the overall market environment not showing signs of major improvement. Our e-commerce business had a strong recovery, benefitting from larger contribution from lower-tier cities and higher value per coupon. We also entered into annual framework contracts with many leading real estate developers. Our online advertising business achieved steady growth in the first quarter as a result of our big-data based suite of targeted advertising products, which continued to be well received by the market...In addition, our efforts to streamline our cost structure began to show results in the first quarter. We will continue to improve our operational efficiency and aim to return to profitability," said CEO Geoffrey He.