Youdao upgraded to Buy from Hold at Jefferies

Jefferies upgraded Youdao to Buy from Hold with a price target of $10, up from $4.60. The company reported 4Q results with revenue and earnings beating estimates and Non-GAAP earnings turning positive for the first time, the analyst tells investors in a research note. Management highlighted the growth strategies for learning services in digital contents and STEAM courses as well as its dedicated strategies in smart devices, the firm adds. In 2023, it expects Youdao to maintain "fast growth trends while losses continue to narrow down."