UPDATE: Credit Suisse Initiates Coverage on YY on Positive Outlook
In a report published Thursday, Credit Suisse analyst Jialong Shi initiated coverage on YY (NASDAQ: YY) with an Outperform rating and $113.00 price target.
In the report, Credit Suisse noted, “We initiate coverage on YY with an OUTPERFORM rating and a target price of US$113. We expect solid 62% earnings growth in FY14 driven by 108% growth in its online music revenue. Its online music business still has immense untapped potential with paying users at merely 2-3% of MAUs, much lower than peers' 5-10%. Scalable business model. YY should ramp up its investment in education in 2014-15E and hopes to gain a decent market share in the Rmb98 bn market. The China online education market is fragmented and under-penetrated.”
YY closed on Wednesday at $84.46.
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