$500彩票网(WBAI)$
Deutsche Bank downgraded 500.com Ltd (NYSE: WBAI) from Buy to Hold with a price target of $11.00 (from $20.00). Analyst Alan Hellawell III pointed to risk from a potential nationwide moratorium on online lottery distribution in China.

"Despite claiming a legitimate lottery license, 500 could face dwindling lottery ticket supply should all of its provincial partners cease online distribution by Mar 1st. The MoF's mid-Jan order seems designed not only to address possible misconduct by the provinces, but also to shift distribution rights from the provinces to the central govt. 500.com faces the prospects of not being able to sell lottery tickets online (100% of rev) until this restructuring is complete," said Hellawell.

"We believe many other online distribution channels have shut down at least part of their lottery distribution, such as Alipay, Tencent and others. WBAI, with one of only two valid licenses, was still selling lottery products online as of Friday PM HK time, but itself could at least temporarily cease distribution. We would expect an online distribution suspension to be temporary, but do not know if the suspension, still hypothetical, would last for weeks or months," added the analyst.