Deutsche Bank Reiterates on Youku Tudou on In-Line 3Q Revenue, Weak 4Q Outlook

Loading...
Loading...
In a report published Friday, Deutsche Bank analyst Alan Hellawell III reiterated a Hold rating and $23.00 price target on
Youku TudouYOKU
. In the report, Deutsche Bank noted, “Youku booked total rev of Rmb858m in 3Q, slightly beat DBe/consensus by 1%/1%. Yet, 3Q ad rev (Rmb745m) fell short our est. (Rmb762m) by 2%. Excluding the impact from amortization rescheduling (add back Rmb144m in COGS), 3Q non-GAAP GPM was 28.5%, broadly in-line with DBe but 2ppt below the Street. On higher-than-expected SG&A, non-GAAP OPM/NPM was still 3.2ppt/1.8ppt below DBe 0%/0.8%. Quoting a soft FMCG ad spending outlook, mgmt guided Rmb780-820m 4Q ad rev (+36-43%YoY), with mid-point 6% lower than DBe while total revs guidance missed the Street by 4%. Although the co is targeting a non-GAAP breakeven in 4Q after accounting adjustment, we believe major NT challenges such as mobile monetization and low sell-through rates in lower tier cities remain unsolved. Maintaining Hold.” Youku Tudou closed on Thursday at $26.36.
Posted In: Analyst ColorReiterationAnalyst RatingsAlan Hellawell IIIDeutsche Bank
Benzinga simplifies the market for smarter investing

Trade confidently with insights and alerts from analyst ratings, free reports and breaking news that affects the stocks you care about.

Join Now: Free!

Loading...