Brean Murray Carret & Co. Starts Youku.com (YOKU) at Hold; Favorable Pick Among the Pack; Stay Neutral on Valuation Yet See Multiple Catalysts with Potential Upside

Brean Murray Carret & Co. initiates coverage on Youku.com (NYSE: YOKU) with a Hold.

Brean analyst says, "Our favorable pick among the pack; stay neutral on valuation yet see multiple catalysts offering potential upside. As the absolute #1 player in the industry, we view YOKU as the best play for online video in China. However, we are concerned about the elevated costs (content acquisition and bandwidth) in the near/mid-term and expect a depressed margin profile in 2012. That said, we would likely revisit our estimates over the next few months and become incrementally positive on the stock, if the positive impact of new regulatory changes to TV content and TV commercials reveals itself with better visibility."

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 $17.85 yesterday.

---

Serious News for Serious Traders! Try StreetInsider.com Premium Free!

---

You May Also Be Interested In

• ICICI Securities Resumes Oberoi Realty Ltd (OBER:IN) at Buy (1)
• UBS Starts Schrodinger (SDGR) at Neutral
• Canaccord Starts Galiano Gold (GAU:CN) at Buy