On Monday, Jefferies adjusted its outlook on Sohu.com Inc (NASDAQ:SOHU), increasing the price target to $15.20 from the previous $13.90. The firm maintained a Buy rating on the stock, following the company's second-quarter earnings report. The analyst pointed out that Sohu's brand advertising revenue hit the high end of the company's guidance, while its online games segment surpassed expectations.
The company's non-GAAP net loss for the quarter was consistent with their guidance. During the earnings call, Sohu's management emphasized their plans to implement innovative solutions aimed at securing more advertising budgets. Looking ahead to the third quarter, the company anticipates its brand advertising to gain momentum, particularly from the food and beverage sector.
Further developments include enhancements to user experience for a new game, which the company believes will contribute positively to its performance. Sohu has also expressed a commitment to its share repurchase program, noting that the timing and extent of buybacks will hinge on the daily trading volume of its shares.
The analyst's commentary underscores Sohu's strategic initiatives to attract advertising budgets and the expected benefits from the food and beverage sector in the upcoming quarter. The company's proactive steps towards improving gaming user experience and its pledge to share repurchases reflect a broader effort to enhance shareholder value.
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