Agora Inc. Receives Buy Rating from Daley Li Amid Strong Financial Performance and Promising Growth Prospects

Bank of America Securities analyst Daley Li reiterated a Buy rating on Agora (API – Research Report) today and set a price target of $7.10.

Daley Li has given his Buy rating due to a combination of factors including Agora Inc.’s strong financial performance and promising growth prospects. The company reported a revenue increase of 1% year-over-year in the first quarter of 2025, with international business revenue showing significant growth driven by expansion in live shopping and entertainment sectors. Additionally, the company’s guidance for the second quarter of 2025 aligns with expectations, projecting a 7-13% year-over-year increase in core revenue, which is supported by growth in international markets and recovery in social entertainment and education sectors in China.
Another factor contributing to the Buy rating is Agora’s improving profitability, as evidenced by its second consecutive profitable quarter and an expanded gross profit margin. The company also maintains a strong net cash position, which provides financial stability and potential for further investment in growth areas such as AI. These elements, combined with a stable operating expense forecast, suggest a positive outlook for Agora’s future performance, justifying the Buy recommendation.