UPDATE: Maxim Group Initiates Coverage on YY with Buy Rating, $90 PT on Market Leader Position in China

In a report published Thursday, Maxim Group analyst Echo He initiated coverage on YY YY with a Buy rating and $90.00 price target. In the report, Maxim Group noted, “We are initiating coverage of YY Inc. (YY) with a Buy rating and a 12-month price target of $90. YY is a leading internet social entertainment company in China that achieved a revenue CAGR of 142% in the past three years to reach total revenues of $301M in 2013, with live online music performances (online music), online games, online advertising, the membership program, and live game broadcasting contributing 47%, 33%, 9%, 8%, and 3%, respectively. The basis of these businesses is YY's audio- and video-enabled online communication software, which is known for its superior quality to major competitors' and its more than 80% timeshare of in-game communication.” YY closed on Wednesday at $68.57.