Youku Tudou is up 2% to $25.53 in pre-market trading today.
The firm believes that the year to date 33% pullback on the shares has given Chinese internet television company's stock more realistic valuation.
"We believe the recent share price pullback has fairly priced in competitive intensity in the online video sector, and Youku Tudou's growing investments in content and bandwidth," analysts said. "We believe the current valuation is justified by Youku Tudou's rapid progress with mobile monetization."
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:
"We rate YOUKU TUDOU INC (YOKU) a HOLD. The primary factors that have impacted our rating are mixed - some indicating strength, some showing weaknesses, with little evidence to justify the expectation of either a positive or negative performance for this stock relative to most other stocks. The company's strengths can be seen in multiple areas, such as its robust revenue growth, largely solid financial position with reasonable debt levels by most measures and good cash flow from operations. However, as a counter to these strengths, we also find weaknesses including disappointing return on equity, poor profit margins and feeble growth in the company's earnings per share."