UPDATE: HSBC Upgrades Youku Tudou, Sees Limited Downside
In a note released Tuesday, HSBC has upgraded Youku Tudou (NYSE: YOKU) from Underweight to Neutral and reiterated its $22 price target. as the firm sees limited downside and a price that reflects the associated risks
Looking at Yoku's first quarter results, HSBC says the company performed "roughly in line" with expectations and actually posted a smaller-than-expected net loss. Additionally, analysts at HSBC noted management's plans to diversify its revenue stream, as well as its customer base as a driver for long-term growth.
Despite HSBC's upgrade of Yoku, the firm has lowered a number of its estimates including a two percent reduction in expected revenue for 2014 and 2015, as well as a reduction in 2015 non-GAAP EPS from $0.85 to $0.71.
Shares of Youku Tudou are trading down about two percent at $19.89.
© 2014 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.