Piper Jaffray Maintains Neutral on Youku.com (YOKU)

Piper Jaffray is out with its report today on Youku.com YOKU, maintaining Neutral on what Piper Jaffray believes to be "fair" valuation. In a note to clients, Piper Jaffray writes, "The bottom line is that we continue to be believers in Youku and the theme of online video in China, but continue to feel the valuation of the stock (~22x FY12 revenues) is fair. Youku reported a strong Q4, its first as a public company. The company exceeded Street revenue expectations by 11% and reached positive EBITDA for the first time in its history. The company effectively addressed questions around content, stating that long term it believed 'head of tail' content prices could regulate as businesses stopped viewing them as loss leaders." At the time of posting, shares of YOKU were trading pre-market at $37.31, down 10.29% from Monday's close.