Maxim Still Rates Yoku.com (YOKU) at Sell, Competition Kills Growth Potential

Maxim Group is reiterating its Sell rating and $22 price target on shares of Yoku.com (NYSE: YOKU) as the firm believes the company is showing signs of losing market share.

In its first-quarter report, Yoku reported user time dropped sequentially from 39 percent to 31 percent.

The firm highlights that Chinese online video users are picking Chinese vs. Western titles. Data also shows multi-episode Chinese TV series are being watched more times and have longer online lives compared to single episode movies.

Maxim Group believes the company will see higher-than-expected content costs, reflecting an increase in the average selling price of multi-episode Chinese TV series.

The firm currently does not see much room for growth with online video users in China, saying strong competition is affecting its growth potential.

With Yoku shares trading up 1.2 percent to $33.41 Tuesday afternoon, Maxim's price target implies potential downside of about 34 percent.

---

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

---

You May Also Be Interested In

• Unicycive Therapeutics (UNCY) PT Raised to $15 at Benchmark Following Q2 Results
• Nlight (LASR) Reiterated at Buy by Stifel: Sell-off is a 'Buying Opportunity'
• Nutanix (NTNX) PT Raised to $80 at Oppenheimer Into EPS