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Investing.com - Bernstein has reiterated an Outperform rating on Bilibili (NASDAQ:BILI), currently trading at $22.32 with a market cap of $9.1 billion, with a price target of $28.00, citing the company’s robust content strategy. According to InvestingPro data, 4 analysts have recently revised their earnings expectations upward for the upcoming period.
The research firm highlighted Bilibili’s strengthening content ecosystem, which now includes more categories such as short plays, AI, and shooting games. Management is focusing on driving daily active users and time spent on the platform to boost monetization efforts.
Bilibili has seen significant growth in the first half of 2024, with advertisers increasing 25% year-over-year and content creators growing 20% year-over-year, according to the report.
The company is implementing AI tools throughout its advertising process to help advertisers tailor headlines, design content for targeted customers, and optimize ad budgets across different formats. Content creators and users also benefit from AI through automatic translation, voice reproduction, and improved search efficiencies.
Despite the positive outlook, Bernstein noted that execution and management bandwidth remain key investor concerns, with advertising and gaming performance likely driving near-term stock movement while high-margin value-added services will be critical for longer-term performance.
In other recent news, Bilibili has reported notable financial achievements and received favorable analyst evaluations. The company experienced a significant 76% year-over-year increase in gaming revenue for the first quarter of 2025, largely attributed to the success of its game San Mou™. Additionally, advancements in Bilibili’s advertising technology, powered by AI-generated content, contributed to a 30% growth in performance ads. Benchmark analysts have maintained a Buy rating and a $30 price target, citing confidence in Bilibili’s revenue outlook and the potential for sustained margin expansion.
HSBC analyst Charlene Liu upgraded Bilibili’s stock from Hold to Buy, increasing the price target to $22.50 following the impressive performance of Sanmou Season 7. Liu anticipates further revenue growth with the upcoming Season 8 and has raised revenue projections for 2025 to 2027 by 6-8%. Bernstein initiated coverage on Bilibili with an Outperform rating, highlighting the company’s break-even status and growth potential driven by its community video and games ecosystem. Bernstein set a price target of HK$218.00, emphasizing Bilibili’s strategic position in the mid-sized games publishing market. These developments reflect a positive outlook for Bilibili’s financial performance and growth trajectory.
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