Citi upgraded Youdao to Buy from Neutral with a price target of $12, up from $9.90. The company reported decent Q4 results with revenue and adjusted earnings above consensus thanks to stronger-than-expected learnings service and advertising, which more than offset weak smart devices, the analyst tells investors in a research note. With decent momentum on AST and adjustment on non-core online courses likely behind, the management expects learnings services growth likely to recover to teens level this year, the firm added.
