Analyst Downgrades: Alibaba, Tableau Software, Youku Tudou

Analysts downwardly revised their ratings on Alibaba Group Holding Ltd (BABA), Tableau Software Inc (DATA), and Youku Tudou Inc (ADR) (YOKU)

Josh Selway

Mar 20, 2015 at 9:14 AM

Analysts are weighing in today on online commerce giant Alibaba Group Holding Ltd (NYSE:BABA), computer software concern Tableau Software Inc (NYSE:DATA), and Internet television company Youku Tudou Inc (ADR) (NYSE:YOKU). Here's a quick roundup of today's bearish brokerage notes on BABA, DATA, and YOKU.

Ahead of the open, BABA is brushing off a price-target cut at J.P. Morgan Securities to $109 from $117, with shares pointed 0.9% higher. It's been a disappointing year for the equity, as it's off 17.5%, closing yesterday at $85.74. Analysts don't seem to mind, though. All 22 brokerage firms covering Alibaba Group Holding Ltd deem it a "buy" or better. On top of this, the stock's average 12-month price target of $110.78 stands at a 29% premium to current trading levels.

Mizuho dropped DATA to "neutral" from "buy" this morning, sending the equity 1% lower in electronic trading. Lately, options traders have been placing bullish bets over bearish on Tableau Software Inc. The stock's 10-day International Securities Exchange (ISE), Chicago Board Options Exchange (CBOE), and NASDAQ OMX PHLX (PHLX) call/put volume ratio of 3.83 sits in the 82nd percentile of its annual range, suggesting calls have been bought to open over puts at a rapid-fire pace. The shares have fared well recently, with an early February, earnings-induced bull gap helping them outperform the S&P 500 Index (SPX) by nearly 15 percentage points over the past two months. DATA settled at $97.45 yesterday.

Disappointing fourth-quarter numbers are weighing on YOKU ahead of the bell, with shares facing a potential 4.8% drop out of the gate. Also, Brean Capital has cut its price target to $20 from $24, yet kept its "buy" assessment. The security has been trending lower for a while now, losing 47.9% of its value year-over-year to perch at $15.15. No surprise, then, to see bearish traders stepping up. Over 10% of Youku Tudou Inc's float is sold short, representing over 14 trading sessions, at normal daily volumes.

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