DAO

AI Memo

Youdao

As of 2026-02-13/Confidence medium

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Data freshness

AI Memo

As of 2026-02-13 • Model: RankAlpha Sentiment AI

Decision Panel

Action, confidence, horizon, and decision blockers at a glance.

Action

—

Confidence

medium

Horizon

—

Key catalyst

Analyst coverage revisions (Jefferies / Citi activity) • 2026-04-30

Expected move: -40%

Biggest risk

Weak enrollment trends, renewed regulatory pressure, or repeated earnings misses push valuation toward the low end of analyst estimates and materially compress multiple.

Invalidation

Break below $5 or thesis failure.

What would change my mind?

AI-driven product adoption and stable regulatory backdrop lead to accelerating revenue and margin recovery; investor sentiment normalizes and targets move toward the high end of consensus.

Research note

Recommendation

—

Confidence

medium

As of

2026-02-13

Base target

$10

p=60%

Bull target

$13

p=20%

Bear target

p=20%

Key bullets

Fast scan of bull, bear, and watch items

BullKey bullets

Next quarterly earnings release
AI product adoption and international expansion
AI-driven product adoption and stable regulatory backdrop lead to accelerating revenue and margin recovery; investor sentiment normalizes and targets move toward the high end of consensus.

BearKey bullets

FX and macro slowdown in China consumer spending
Low ADR liquidity and widening bid-ask spreads
Renewed China education regulatory action

WatchKey bullets

Analyst coverage revisions (Jefferies / Citi activity)

Summary

High-level snapshot

Recommendation

Model confidence

medium

Timeframe

Asset

Equity

Trigger

Base case: $10 (p=60%)

Bull/Bear spread: -22% / -72%

Vs latest close: Bull -22% · Base -40% · Bear -72%

Scenario probabilities

Bull Target: $13 (p=20%)Base Target: $10 (p=60%)Bear Target: $5 (p=20%)

Commentary

Mixed and cautiously neutral: analyst medians cluster near ~$10, implying limited near-term upside from the current anchor; meaningful upside requires visible traction in AI-driven monetization and a stable regulatory backdrop [#SERP-3] [#SERP-4]. Active analyst note flow can move the ADR on low liquidity, so short-term swings are likely despite a neutral consensus central view [#SERP-6]. Our stance carries moderate confidence (55%) over the recommended timeframe.

As of 2026-02-13 • Updated bi-weekly / post-earningsSource: Internal modelMethodology

Analyst Summary

Thesis highlights from the latest analysis

Bull Case

AI-driven product adoption and stable regulatory backdrop lead to accelerating revenue and margin recovery; investor sentiment normalizes and targets move toward the high end of consensus.

Bear Case

Weak enrollment trends, renewed regulatory pressure, or repeated earnings misses push valuation toward the low end of analyst estimates and materially compress multiple.

Drivers

Scannable catalysts and supporting factors

Next quarterly earnings release
AI product adoption and international expansion

Human Analyst Targets

External snippets for comparison only; verify at source.

Unverified externalLast fetched 2026-02-13Source quality: external scrape

External snippets are unverified; treat as directional signals only. Always confirm with the original provider.

Inline RA est

Provider

serper

Median (USD)

$9.81

Range (USD)

$4.60 - $12.72

Count

Query: Youdao Inc Class A ADR (DAO) analyst consensus price target high low average

Youdao (DAO) Stock Forecast & Price Target - Investing.com
Search result #1
According to projections from 8 analysts, the average 12-month price target for Youdao is 11.613, with a high estimate of 16.52879161 and a low estimate of ...
Open source
Youdao (DAO) Stock Forecast and Price Target 2026 - MarketBeat
Search result #2
DAO's current price target is $0.00. Learn why top analysts are making this stock forecast for Youdao at MarketBeat.
Open source
Youdao, Inc. (DAO) Stock Price, News, Quote & History
Search result #3
Earnings Per Share (GAAP). View More. Analyst Insights: DAO. View More. Analyst Price Targets. 4.08 Low. 11.76 Average. 9.05 Current. 14.92 High. Analyst ...
Open source
YOUDAO INC - ADR (DAO) Stock Price, Forecast & Analysis
Search result #4
12 analysts have analysed DAO and the average price target is 12.72 USD. This implies a price increase of 27.6% is expected in the next year compared to the ...
Extracted: $12.72Open source
What is the current Price Target and Forecast for Youdao (DAO)
Search result #5
The forecasts range from a low of $9.90 to a high of $11.20. The average price target represents an increase of 8.54% from the last closing price of $9.72.
Extracted: $9.90, $11.20, $9.72Open source
Youdao, Inc.: Target Price Consensus and Analysts ...
Search result #6
Jefferies Upgrades Youdao to Buy From Hold, Adjusts Price Target to $10 From $4.60 · Citigroup Adjusts Price Target on Youdao to $6.50 From $7.80, Maintains Buy ...
Extracted: $10.00, $4.60, $6.50, $7.80Open source

Scenarios

Bull Target (Scenario probability)

$13 / p=20% prob

Base Target (Scenario probability)

$10 / p=60% prob

Bear Target (Scenario probability)

$5 / p=20% prob

Price $16 as of 2026-07-30

Nearest Scenario: Bull (∆ 22%)

Targets vs latest close: Bull -22% · Base -40% · Bear -72%

Sentiment & Exposure

Sentiment unavailable: insufficient coverage

Events

Other notable items detected

EVENT2026-04-30
Analyst coverage revisions (Jefferies / Citi activity)
Recent analyst note activity shows target changes and could trigger directional flows on upgrades/downgrades [#SERP-6].
Prob 50.00% • Move 6.00% • Priced-in 30.00%

Short-term Catalysts

Next few weeks

Next quarterly earnings release
2026-05-14
Quarterly results may drive re-rating if revenue or user metrics miss/beat consensus; market watching margins and international uptake [#SERP-3] [#SERP-1].
Prob 65% • Move 8% • Priced-in 40%

Long-term Catalysts

Months to a year

AI product adoption and international expansion
2027-02-13
Sustained adoption of AI-enhanced learning products and modest international growth could materially boost ARR and margins over 12+ months [#SERP-4] [#SERP-1].
Prob 40% • Move 35% • Priced-in 20%

Risks

FX and macro slowdown in China consumer spending
Low ADR liquidity and widening bid-ask spreads
Renewed China education regulatory action
Slower-than-expected user growth/monetization

Peers

Symbol	Summary
TAL	Large China K-12 tutoring provider; shares sensitivity to domestic regulation and demand cycles similar to Youdao.
EDU	New Oriental (EDU) — broader test-prep and consumer learning footprint; comparable exposure to Chinese education demand and product diversification.

Sources

Internal and external references used in this analysis

Model source: RankAlpha Sentiment AI
Human targets: serper
Targets query: Youdao Inc Class A ADR (DAO) analyst consensus price target high low average
Analysis date: 2026-02-13

AI Stock Memo: DAO - Youdao - RankAlpha