Analyst Saiyi He of CMB International Securities maintained a Buy rating on Bilibili, boosting the price target to $28.80.
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Saiyi He has given his Buy rating due to a combination of factors that highlight Bilibili’s promising financial outlook. The company is expected to see a significant increase in total revenue and adjusted net income, driven by strong performances in its advertising and mobile game segments. The advertising business is anticipated to maintain robust growth, bolstered by improved commercial infrastructure and successful monetization strategies, while the mobile games sector is experiencing sustained momentum from both legacy titles and new offerings like SanMou.
Furthermore, Bilibili’s margin expansion is projected to continue, supported by effective cost control and operating leverage. The adoption of AI technologies is enhancing operational efficiency, particularly in content censorship, and is expected to further improve ad monetization and the content ecosystem. Additionally, the upcoming launch of several anticipated game titles in the second half of the year presents further growth opportunities. These factors collectively support a positive earnings growth outlook, justifying the Buy rating and an increased target price.
He covers the Communication Services sector, focusing on stocks such as Bilibili, Alphabet Class C, and Baidu. According to TipRanks, He has an average return of 18.7% and a 67.84% success rate on recommended stocks.
In another report released on July 17, Bank of America Securities also reiterated a Buy rating on the stock with a $27.00 price target.