Deutsche Bank Downgrades Sohu.com (SOHU) to Hold; Margin Compression & Lower Earnings Visibility
SOHU Hot Sheet
Rating Summary:8 Buy, 7 Hold, 1 Sell
Rating Trend:
Down
Today's Overall Ratings:
Up: 16 | Down: 7 | New: 23
Deutsche Bank downgraded Sohu.com (NASDAQ: SOHU) from Buy to Hold with a price target of $60.00.
Deutsche analyst says, "We believe the entire Sohu group (Changyou (Nasdaq: CYOU), the gaming arm, Sogou, the search arm and online video arm) will step into an investment cycle in 2012. This leads us to cut our 2012E and 2013E operating margins by 6.7ppt and 4.9ppt, respectively. Our 2012E and 2013E non-GAAP EPS are 36% and 28% lower than previously forecast, respectively. We believe visibility on returns of some of the investments (e.g. browser/search technology and emerging game areas) is low at current stage. We expect the market could further lower 2012E earnings."
For an analyst ratings summary and ratings history on Sohu.com click here. For more ratings news on Sohu.com click here.
Shares of Sohu.com closed at $51.84 yesterday, with a 52 week range of $45.40-$109.37.
Discover Wall Street's best ratings calls with the pros - Upgrade to Ratings Insider Elite. Free Trial!
Deutsche analyst says, "We believe the entire Sohu group (Changyou (Nasdaq: CYOU), the gaming arm, Sogou, the search arm and online video arm) will step into an investment cycle in 2012. This leads us to cut our 2012E and 2013E operating margins by 6.7ppt and 4.9ppt, respectively. Our 2012E and 2013E non-GAAP EPS are 36% and 28% lower than previously forecast, respectively. We believe visibility on returns of some of the investments (e.g. browser/search technology and emerging game areas) is low at current stage. We expect the market could further lower 2012E earnings."
For an analyst ratings summary and ratings history on Sohu.com click here. For more ratings news on Sohu.com click here.
Shares of Sohu.com closed at $51.84 yesterday, with a 52 week range of $45.40-$109.37.
Discover Wall Street's best ratings calls with the pros - Upgrade to Ratings Insider Elite. Free Trial!
You May Also Be Interested In
- UPDATE: UBS Downgrades Wisconsin Energy (WEC) to Neutral; Taking Some Off The Table
- UPDATE: Nomura Securities Upgrades ASML Inc. (ASML) to Buy; Revenue Outlook Underestimated
- UPDATE: Youku.com (YOKU) Misses Q1 EPS by 1c; Sees Q2 Sales Up 90-100% YoY
Create E-mail Alert Related Categories
DowngradesRelated Entities
Deutsche Bank, EarningsSign up for StreetInsider Free!
Receive full access to all new and archived articles, unlimited portfolio tracking, e-mail alerts, custom newswires and RSS feeds - and more!
