Alicia Yap, an analyst from Citi, maintained the Buy rating on Sohu. The associated price target is $22.00.
TipRanks Cyber Monday Sale
- Claim 60% off TipRanks Premium for data-backed insights and research tools you need to invest with confidence.
- Subscribe to TipRanks' Smart Investor Picks and see our data in action through our high-performing model portfolio - now also 60% off
Alicia Yap’s rating is based on several key factors that highlight Sohu’s current financial performance and strategic actions. The company reported a significant revenue increase in the third quarter of 2025, surpassing expectations by 34%, primarily due to a strong performance in its online gaming segment. This was driven by higher-than-anticipated gamer spending on new releases and robust server retention, which led to a swing from a projected loss to an adjusted net profit of $9 million.
Despite the positive third-quarter results, Sohu’s management has forecasted a decline in gaming revenue for the fourth quarter and a return to a net loss. However, the company’s ongoing stock repurchase program, with $97 million worth of stock already bought back, provides a supportive factor for the stock’s valuation. Additionally, the revised sum-of-the-parts valuation for 2026 has been adjusted upwards, reflecting a potential share price increase. These elements combined justify the Buy rating, considering the below-cash valuation and the strategic repurchase support.
In another report released today, Jefferies also maintained a Buy rating on the stock with a $20.00 price target.