UPDATE: Piper Jaffray Reiterates Youku at Neural and Cuts PT to $16 on Less Than Expected Sales Distributions

In a report published Friday, Piper Jaffray reiterates Youku

at Neutral and lowers price target from $17-$16 on distant conviction in earnings estimates. Piper Jaffray reported that, “We are assuming coverage of YOKU with a Neutral rating and a $16 price target, based on 4.6x CY13 EV/Revenue plus cash, in line with our comparable group for the company. 4Q results exceeded consensus revenue and EPS estimates, while 1Q13 revenue guidance was below our and the Street's estimates. Regarding Youku Tudou integration, back-end systems are well in place yet full sales team integration remains a work in process, weighing on 1Q revenue momentum. We await signs of better earnings visibility and top-line re-acceleration before becoming more constructive on YOKU shares. We anticipate the shares will be under significant selling pressure this morning due to the 1Q guide-down." Youku shares closed at $20.39 on Thursday.