Deutsche Bank Downgrades Youku.com (YOKU) to Sell

Deutsche Bank downgraded Youku.com (NYSE: YOKU) from Hold to Sell with a price target of $10.90 (from $18.60).

Analyst Vivian Hao said, "We believe Youku is facing increasing pressure from the content arms race and market share challenges following a year of 'conservative progression'. In FY14 the company significantly scaled back in PGC, especially head-content procurement, while cash-rich parents supported key competitors iQiyi and Tencent video, which stayed aggressive and made substantial market share gains. Youku's market share has slipped from 25% in early 2014 to 22% now, according to EnfoDesk. With hopes of reversing the situation and incubating new business, the company plans to revive an aggressive investment plan in FY15 to regain its momentum, although this is likely too late."

For an analyst ratings summary and ratings history on Youku.com click here. For more ratings news on Youku.com click here.

Shares of Youku.com closed at $15.15 yesterday.

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