UPDATE: Deutsche Bank Initiates Youku Tudou at Buy on Mobile-Driven Margin Improvement
Deutsche Bank initiated Youku Tudou (NYSE: YOKU) with a Buy rating and a $29.56 price target.
Deutsche Bank noted, "We expect pricing disparity between online video and offline TV stations, along with multiple other drivers, will drive top-line to grow 50% CAGR from 2012-2015 with consistent margin improvement. Given the current cost structure and market dynamic, we expect 43ppt margin improvement over the next three years with GM to reach 53% and non-GAAP OM to hit 22% in 2015. We initiate with Buy and a target price of USD29.56."
Youku Tudou closed at $22.60 on Friday.
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