T.H. Capital Sees "Significant Growth" In Views For Youku Tudou Inc.

T.H. Capital, LLC issued a report Thursday on Youku Tudou Inc. YOKU and noted “significant growth in total views” for the internet television company.

Analysts led by Tian X. Hou reported that “during the period of 07/01/2014-09/25/2014, the average number of actively viewed content in YOKU’s content library could be 26,819, up from 26,651 in 2Q 2014.  Meanwhile, “average daily views of YOKU increased to 498.4M from 383.7M in 2Q 2014.”

For newly released dramas, The total number of views...may be 7.9 billion during the period of 07/01/2014-09/25/2014, almost double from 4.0 billion in 2Q 2014.”  

Mobile downloads are estimated to be 2,352M as of September 25, up from 1,749M at the end of June 2014.

Regarding valuation, the report concluded that “the competitive landscape is far from being settled and continuous competition on the content front may pressure margins further. We believe it may take longer for YOKU to accomplish the business model changes and to regain profitability. Therefore, we maintain our Hold rating until we see a meaningful change in content acquisition and organic traffic monetization.”

The firm maintains a Hold Rating on the company.

Youku Tudou Inc. recently traded at $17.01, down 2.02 percent.