UPDATE: Deutsche Bank Downgrades Youku Tudou on Lack of Near-Term Catalysts

In a report published Monday, Deutsche Bank analyst Alan Hellawell III downgraded Youku Tudou YOKU from Buy to Hold, but raised the price target from $22.84 to 23.00.

In the report, Deutsche Bank noted, “We do not see any catalysts driving Youku outperformance in the next 12 months due to delayed mobile monetization/break-even point. The stock trades close to our DCF valuation of $23; d/g to HOLD. We widen our FY13 non-GAAP net loss by 14% and believe current Street expectation of FY14E profitability is overly optimistic (we are 80% lower). We expect co to struggle for breakeven in 2H13 due to 1) delay of mobile monetization, 2) content costs remains cumbersome due to competition, 3) limited visibility of lower tier city sell-through improvement.”

Youku Tudou closed on Friday at $23.29.