UPDATE: Nomura Equity Research Reiterates Buy Rating, Lowers PT on Youku Tudou
In a report published Monday, Nomura Equity Research reiterated its Buy rating on Youku Tudou (NYSE: YOKU), but lowered its price target from $46.00 to $40.00.
Nomura Equity Research noted, “Youku‘s 3Q12 standalone revenue exceeded the high end of company guidance and our estimates. However, company top-line guidance for 4Q12F is lower than we expected, which we believe is due to macro uncertainty and the integration process. The transition from traditional TVs to online videos in China serves as a strong potential revenue growth catalyst, in our view. We maintain our Buy rating and lower our TP to USD40. Our TP is based on a DCF valuation (valuation methodology unchanged), assuming a WACC of 11.0% and a terminal growth rate of 3%.”
Youku Tudou closed on Friday at $17.06.
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Tags: Nomura Equity Research