SouFun Holdings is a real estate Internet portal in China that uses websites and mobile applications to support online communities and networks of users seeking information on the real estate and home-related sectors.
SouFun Holdings is targeting to develop new home agency and second-hand home brokerage services, which are worth 1.5% to 2% and 2.5% to 3% of a home's value, with advertisement expenses at only 1%, Barclays noted.
"Our positive view on SouFun Holdings is mainly due to the company's transaction-based advertisements to new home agency and brokerage services for the secondary market, and the strong organic traffic of SouFun's websites and own apps," Barclays analysts said.
Separately, TheStreet Ratings team rates SOUFUN HLDGS LTD as a Buy with a ratings score of B-. TheStreet Ratings Team has this to say about their recommendation:
"We rate SOUFUN HLDGS LTD (SFUN) a BUY. This is driven by multiple strengths, which we believe should have a greater impact than any weaknesses, and should give investors a better performance opportunity than most stocks we cover. The company's strengths can be seen in multiple areas, such as its revenue growth, expanding profit margins and notable return on equity. We feel its strengths outweigh the fact that the company has had somewhat weak growth in earnings per share."