Piper Jaffray’s Safa Rashtchy released a note on wireless value added service provider KongZhong (ticker: KONG) yesterday. Key extracts:
We continue to believe that KongZhong is well positioned for the transition to 3G and that the incremental investment on the WAP portal will solidify its position when 3G licenses are granted. We would be buyers of KONG at these levels. We maintain our Outperform rating and a price target of $15 (16x 2006 EBITDA plus cash).
KONG 1-Yr Price Performance: