An Oppenheimer & Co. analyst downgraded Sohu.com Inc. late Tuesday, saying the Chinese Internet company's stock is overpriced after a recent rally.
The downgrade comes after Sohu's first-quarter profit quadrupled on strong advertising and online game revenue.
Analyst Jason Helfstein cut his rating to "Perform" from "Outperform" and said he no longer sees shares as having a "compelling" value.
The stock has jumped 32 percent so far this year.
Due in part to the strong first-quarter results, Helfstein raised his price target to $73 from $66. The move brings the target closer to Tuesday's $72.17 closing price.
Helfstein also raised his second-quarter earnings estimate to 72 cents per share from 55 cents per share. Analysts polled by Thomson Financial expect, on average, earnings of 45 cents per share for the period.
Shares fell $1.17 to $71 in premarket trading Wednesday.
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