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UPDATE: Maxim Group Downgrades Youku Tudou to Sell, Names $16 PT

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Youku Tudou Down Following Q3 Results

In a report published Monday, Maxim Group downgraded its rating on Youku Tudou (NYSE: YOKU) from Hold to Sell, and named a $16.00 price target.

Maxim Group noted, “We are downgrading YOKU to Sell, from Hold, mainly due to likely lower-than-expected profitability in the coming years. YOKU is currently trading at 37x our 2015 P/E, a more than 150% premium to the peer average. Given YOKU's likely 50% faster revenue growth than the peer average, we believe a 50% premium, or $16/share, is more justifiable. Our 10-year DCF also supports a fair value of $15-$16/share. In addition, the lock-up expiration overhang (YOKU shares issued to former Tudou major shareholders are set to expire on February 20) may keep the stock under pressure.”

Youku Tudou closed on Friday at $23.26.

Latest Ratings for YOKU

DateFirmActionFromTo
Nov 2014JP MorganMaintainsNeutral
Aug 2014MacquarieMaintainsOutperform
Aug 2014Morgan StanleyDowngradesOverweightEqual-weight

View More Analyst Ratings for YOKU
View the Latest Analyst Ratings

Posted-In: Maxim GroupAnalyst Color Downgrades Analyst Ratings

 

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