TSX runs higher on rate cut expectations
On Friday, Benchmark analyst Fawne Jiang increased the price target for Bilibili (NASDAQ:BILI) shares to $30.00, up from the previous $24.00, while reiterating a Buy rating for the company. This adjustment comes in the wake of Bilibili’s fourth-quarter earnings, which surpassed expectations, driven by the robust performance of their flagship game San Mou and a surge in advertising revenue that exceeded forecasts. The company, currently valued at $9.2 billion, has shown impressive momentum with a 114% return over the past year. According to InvestingPro data, analyst targets for the stock range from $16.44 to $34.40, with a consensus leaning strongly toward Buy.
Bilibili’s San Mou is poised for significant updates throughout 2025, including the launch of Season 6 this week, an expansion pack slated for release in June, and a potential international expansion in the second half of the year. Management expressed confidence in the game’s long-term prospects, with plans to operate it for more than five years.
In addition to its gaming success, Bilibili is focusing on growth strategies that center on enhancing advertising, content creation, and community engagement. The company aims to elevate ad technology and conversion rates by leveraging artificial intelligence. Given Bilibili’s currently underutilized advertising ecosystem, Benchmark sees substantial room for growth potential in this area.
The company’s forward-looking statements and strategic initiatives indicate a commitment to long-term growth and expansion in both its gaming and advertising sectors. Bilibili’s management remains optimistic about the future, as they continue to develop their platform and explore new opportunities for monetization and user engagement. Dive deeper into Bilibili’s financial health, growth prospects, and 12 additional exclusive ProTips with a comprehensive Pro Research Report, available on InvestingPro.
In other recent news, Bilibili Inc . has been the subject of varied analyses from several financial firms. Mizuho (NYSE:MFG) Securities has increased its price target for Bilibili to $26, citing significant revenue growth and margin expansion. They have maintained an Outperform rating, noting a consistent annual margin growth of approximately 15 percentage points over the past two years. Mizuho projects a further 7 percentage point improvement in margins for fiscal year 2025 and anticipates mid-teen percentage revenue growth. Conversely, Citi has reduced its price target to $20.50 while maintaining a Neutral rating, as they expect Bilibili’s revenue and earnings to align with consensus estimates. Citi forecasts stable gaming revenue but anticipates a slight deceleration in advertising growth due to tougher year-over-year comparisons. Meanwhile, Bernstein SocGen Group has retained a Market Perform rating with a price target of $18, highlighting the challenges Bilibili faces in surpassing peak gaming revenues. Bernstein also noted that Bilibili’s stock is trading at 22-25 times its projected 2025 earnings, indicating potential volatility.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.