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Goldman Sachs Upgrades Youku Tudou (YOKU) to Neutral

April 16, 2014 8:19 AM EDT
Get Alerts YOKU Hot Sheet
Price: $27.54 --0%

Rating Summary:
    5 Buy, 11 Hold, 3 Sell

Rating Trend: = Flat

Today's Overall Ratings:
    Up: 13 | Down: 11 | New: 11
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Goldman Sachs upgraded Youku Tudou (NYSE: YOKU) from Sell to Neutral with a price target of $27.00.

Analyst Piyush Mubayi said, "We upgrade Youku Tudou to Neutral from Sell. We believe the recent share price pullback has fairly priced in competitive intensity in the online video sector, and Youku Tudou’s growing investments in content and bandwidth. The share price has dropped by 33% from the year-to-date peak. We believe the current valuation is justified by Youku Tudou’s rapid progress with mobile monetization. Mobile’s contribution to advertising revenues grew to 10% in 4Q from 3% in 3Q."

"According to the iResearch data released at end-March, Youku’s mobile app ranks third measured by user time spent in February, only after WeChat and QQ. With 81mn unique visitors, it was the only video app that made the top 10 of domestic mobile apps," added the analyst. "After intensive sales efforts since mid-2013, we believe the multi-screen advertising packages are set to gain more traction as they potentially offer a higher ROI. In addition, the company is striving to capitalize on its strong user engagement."

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

Shares of Youku Tudou closed at $24.57 yesterday.



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