UPDATE: JP Morgan Initiates Overweight, $30 PT on Youku on Multiple Potential Catalysts Ahead

JP Morgan said in a note on Monday that it initiated coverage on Youku

with an Overweight rating and a price target of $30. JP Morgan said, "We initiate on Youku Inc. (YOKU US) with an Overweight rating and Dec-13 PT of US$30. In a challenging year for most online ad platforms, we believe Youku stands out as the clear winner to benefit most in the structural budget shift from traditional TV to online video. Buy ahead of multiple potential catalysts: (1) ad rate increase and inventory expansion in 2H12/2013; (2) favorable content amortization schedule starting 1Q13; and (3) quarterly profitability in 2013." Youku closed at $20.29 on Friday.