SOHU 3Q07: Summary of Analyst Actions
"Strong Buy" Rated U.S.-Listed Chinese Stocks (February 17, 2012)
A Great Q3. Sohu (SOHU) reported strong Q3 results yesterday after market close. The major driver is its online game TLBB. The stock opened 9.8% higher than yesterday's closing price. Overall, it's a great Q3.
Analyst Actions. This morning, nine analysts published reports on Sohu's Q3 results (see table below). Here is a summary: 1) No upgrades or downgrades. 2) Eight one the nine analysts maintained a positive rating; one maintained a neutral rating. 3) Eight of the nine analysts raised their price target. Average price target was up 40% from $45 to $63. The exception, Susquehanna, has a "No Target" policy.
Table: Analyst Actions Following Sohu 3Q07 Earnings Report
| Company | Rating | Price Target |
| CIBC World Mkts | Maintained "Sector Outperformer" | Raised from $50 to $60 |
| Citigroup | Maintained "Buy" | Raised from $40 to $65 |
| Credit Suisse | Reiterated "Outperform" | Raised from $45.2 to $61.7 |
| Goldman Sachs | Maintained "Neutral" | Raised from $35 to $51 |
| JP Morgan | Maintained "Overweight" | Raised from $39 to $69 |
| Pali Capital | Maintained "Buy" | Raised from $41 to $66 |
| Piper Jaffray | Maintained "Outperform" | Raised from $61 to $68 |
| RBC Capital Mkts | Maintained "Outperform" | Raised from $48 to $65 |
| Susquehanna | Maintained "Positive" | Maintained "No Target" |
Analysis. The average price target went up 40%, although there were no upgrades because most of the analysts already had a positive rating. Almost all of the analysts are positive on SOHU and raised their price targets. Overall, Wall Street's sentiment is overwhelmingly bullish on SOHU. We believe the stock will do well in the next several months on strong fundamentals and positive investor sentiment.
What's Next. In the next article of our China Internet Research, we will analyze SOHU's historical earnings, and its performance between earnings releases, so that investors will have a better sense of how the stock might perform before Q4 earnings.
Related: Compare 19 China Internet Stocks; Online Games Ranking; China Internet Research;
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