XING Gains as Deutsche Sees New Products Driving GrowthWeixin Zha
Xing AG rose the most in nine months after analysts at Deutsche Bank AG said that growth opportunities at the German provider of online networking platforms seem “highly under-appreciated.”
Xing gained as much as 9.5 percent, the steepest intraday gain since Oct. 26, 2012. The shares traded 9.4 percent higher at 56.45 euros as of 11 a.m. in Frankfurt, valuing the company at 313 million euros ($416 million). Trading volume was almost twice the three-month daily average.
Xing has invested in new products over the past year, including an employer branding profile and the XING Talent Manager which enables corporate users to search a pool of canditates.
“We believe that XING’s revamped product portfolio, mainly the XTM and Employer Branding Profile, is poised for strong growth,” Frankfurt-based analysts Benjamin Kohnke and Uwe Schupp, wrote in a note dated Aug. 2, uprading the Hamburg-based company to buy from hold with a price estimate of 73 euros.
The new products will add 7 million euros of incremental revenue in 2014, “while the online recruiting business will continue to be the main driver of XING’s business in the short to mid-term.”
Xing should report “a very solid set of results which show a nice pick-up in revenue growth” of 13.6 percent when it releases second-quarter earnings tomorrow, the analysts wrote.