In a note to investors, Mizuho downgraded Youku Tudou to "neutral" from "underperform," according to Benzinga. The analyst firm maintained its price target of $18 for the company.
Mizuho analyst Jin Yoon said the company doesn't seem to be an attractive candidate for a "going private" offer or a takeover target due to its "asset-light nature and loss-making operations."
Yoon wrote, "In addition, if investors consider the USD30.5b price at which Alibaba invested in Youku one year ago as the benchmark price, without a privatization or takeout offer, we believe there is significant downside risk to the stock."
Youku Tudou owns and operates an online video service in China.
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 solid stock price performance. However, as a counter to these strengths, we also find weaknesses including feeble growth in the company's earnings per share, deteriorating net income and disappointing return on equity."