In a research report released today, Brean Capital analyst Fawne Jiang reiterated a Buy rating on shares of Youku Tudou Inc (ADR) (NYSE:YOKU) with a price target of $26.00, after the company reported solid second quarter results and provided largely in-line third quarter revenue guidance.

Jiang wrote, “We are positive on: 1) with ad revenue healthy and the consumer business a robust driver of growth, the company is back on a fast growth track; and 2) with increasingly differentiating content strategies (largely upon original, UGC and PGC) and solid progress of revenue diversification, thanks to consumer revenue taking off, we see potential room for improving cost structure/ margin profile.”

“It is important to note that we see industry consolidation as overdue for the online video vertical. Any major consolidation with YOKU involved would likely be a catalyst for the stock. If competitors tied up, YOKU would likely see serious headwinds accordingly,” the analyst added.

According to, which measures analysts’ and bloggers’ success rate based on how their calls perform, analyst Fawne Jiang has a total average return of 0.6% and a 37.5% success rate. Jiang has a 0.3% average return when recommending YOKU, and is ranked #2110 out of 3741 analysts.

Out of the 10 analysts polled by TipRanks, 4 rate Youku Tudou stock a Buy, 4 rate the stock a Hold and 2 recommend to Sell. With a return potential of 24%, the stock’s consensus target price stands at $21.99.

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