Chardan Capital Market Reiterates Bullish Stance on YOU On Demand (YOD) on 'Impressive' FY14 Guidance

Chardan Capital Markets analyst Jay Srivatsa reiterated a Buy rating and $10 price target on YOU On Demand Holdings (NASDAQ: YOD) saying FY14 guidance suggests VOD strategy begining to work.

Srivatsa comments, "While YOD reported Q1:14 revenues of $137.6K and net loss of $1.48 per share, the company provided FY:14 revenue guidance of $3 million suggesting to us that its recent foray into the handset and OTT segments offering video on demand (VOD) service could be gaining traction. The company further stated that they expect to be cash flow positive by Q1:15 reassuring investors that the company is unlikely to need further infusion of cash for the foreseeable future."

He added, "With the cash infusion and progress in Mobile, Cable, OTT and IPTV areas, we believe YOD is beginning to execute on its strategy effectively to position itself as the premier video on demand provider in China. FY:14 guidance, while being lower than our estimate of $6 million, clearly suggests to us that model is beginning to work and as such, we would advise investors to take advantage of the recent pullback and put new money to work at these levels."

For an analyst ratings summary and ratings history on YOU On Demand Holdings click here. For more ratings news on YOU On Demand Holdings click here.

Shares of YOU On Demand Holdings closed at $2.50 yesterday.

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