Analyst Daley Li of Bank of America Securities reiterated a Buy rating on Agora, boosting the price target to $7.40.
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Daley Li has given his Buy rating due to a combination of factors that highlight Agora’s promising growth trajectory and financial stability. The company’s second-quarter results for 2025 were in line with expectations, showcasing a 3% quarter-over-quarter revenue increase to $34.3 million, which aligns with their guidance. Excluding the terminated CDN business, there was an 11% year-over-year revenue growth, indicating a solid recovery. The international segment saw a 17% year-over-year increase, while the domestic segment grew by 5%, further supporting the positive outlook.
Additionally, Agora’s guidance for the third quarter of 2025 anticipates revenue growth between 8-14% year-over-year, driven by increased usage in live shopping and entertainment sectors internationally, and expansion in digital transformation and IoT sectors domestically. The company also benefits from a strong net cash position, which provides financial flexibility. Furthermore, Agora has demonstrated improved profitability with a net profit margin of 4.3% in the second quarter, marking its third consecutive profitable quarter. These factors, combined with the potential revenue upside from AI initiatives, underpin Daley Li’s Buy rating.
According to TipRanks, Li is a 5-star analyst with an average return of 81.8% and a 62.96% success rate. Li covers the Technology sector, focusing on stocks such as VNET Group, Inc. Sponsored ADR, Agora, and GDS Holdings.