NEW YORK (TheStreet) -- Youku Tudou (YOKU) shares were upgraded to "neutral" from "underweight" by analysts at HSBC (HSBC) on Tuesday.
The firm maintained its $22 price target on the Chinese Internet television company's shares.
Analysts cited the recent pullback on the company's shares as the reason for the more optimistic outlook.
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Separately, TheStreet Ratings team rates YOUKU TUDOU INC as a Hold with a ratings score of C-. TheStreet Ratings Team has this to say about their recommendation:
- The revenue growth came in higher than the industry average of 21.3%. Since the same quarter one year prior, revenues rose by 35.6%. This growth in revenue appears to have trickled down to the company's bottom line, improving the earnings per share.
- YOKU has no debt to speak of therefore resulting in a debt-to-equity ratio of zero, which we consider to be a relatively favorable sign. Along with this, the company maintains a quick ratio of 3.12, which clearly demonstrates the ability to cover short-term cash needs.
- The stock price has risen over the past year, but, despite its earnings growth and some other positive factors, it has underperformed the S&P 500 so far. Despite the fact that it has already risen in the past year, there is currently no conclusive evidence that warrants the purchase or sale of this stock.
- The company's current return on equity has slightly decreased from the same quarter one year prior. This implies a minor weakness in the organization. Compared to other companies in the Internet Software & Services industry and the overall market, YOUKU TUDOU INC's return on equity significantly trails that of both the industry average and the S&P 500.
- The gross profit margin for YOUKU TUDOU INC is currently extremely low, coming in at 12.22%. It has decreased significantly from the same period last year. Along with this, the net profit margin of -32.08% is significantly below that of the industry average.
- You can view the full analysis from the report here: YOKU Ratings Report
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