HSBC upgrades Bilibili to Buy on better outlook, valuation

HSBC last night upgraded Bilibili (BILI) to Buy from Hold with a price target of $22.50, up from $21.50. The firm has turned more constructive on the soon to launch S8 at the end of May, which it says contains major updates to game play, maps and characters as the game celebrates its one-year anniversary. Bilibili’s better than expected Q1 margin boosted HSBC”s confidence in further margin improvement as the company steps up utilization of artificial intelligence to improve operating efficiency and drive better user synergies between its platform and Sanmou. It also believes Bilibili’s advertising growth remains intact. The analyst cites a better outlook and valuation for the upgrade.