Analyst 'Cautiously Positive' on Sohu (SOHU) as Shares Continue Lower

While analysts at Susquehanna and RBS downgraded shares of Sohu.com (Nasdaq: SOHU) Tuesday following Monday's fourth-quarter results and guidance and the resulting 15 percent decline, Nomura's Jin Yoon is "cautiously positive" on the name. The downgrades seem to be weighing on bulls Tuesday afternoon, however: shares last traded at $51.76, down 3 percent for the session.

Yoon reiterated a previous assumption that online videos are continuing to cannibalize display ads and, consequently, tighten margins. The analyst insists the company's branded-ad unit depends on a strong online video market.

Nomura maintains a Neutral rating and $60 price target on Sohu.com shares.

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