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)

Mar 20, 2015 at 9:14 AM
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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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