Bilibili stock price target lowered to $29 by CFRA on growth concerns

Investing.com - CFRA has reduced its 12-month price target on Bilibili (NASDAQ:BILI) to $29 from $32 while maintaining a Hold rating, citing a more cautious outlook on top-line growth despite profitability improvements. Currently trading at $26.11, Bilibili is hovering near its InvestingPro Fair Value, with the stock having gained over 43% in the past year.

The Chinese video platform reported third-quarter earnings that exceeded expectations across all operating metrics. Sales reached CNY7.69 billion, net profit hit CNY469 million, and adjusted net profit was CNY786 million, all surpassing consensus estimates of CNY7.64 billion, CNY307 million, and CNY642 million, respectively. InvestingPro data shows Bilibili has been profitable over the last twelve months with basic EPS of $0.26 USD and total revenue of $4.18 billion USD.

Bilibili demonstrated significant operating leverage with its adjusted net profit increasing 233% year-over-year to CNY786 million. The company’s adjusted net profit margin expanded substantially to 10.2% from 3.2% in the same period last year. This profitability improvement aligns with InvestingPro Tips highlighting that Bilibili trades at a low P/E ratio relative to near-term earnings growth, with a favorable PEG ratio of 0.78.

CFRA noted encouragement from Bilibili’s substantial profitability progress and robust 23% growth in its high-margin advertising business during the quarter. The new price target is based on an implied 2025 price-to-sales multiple of 2.5x, compared to the five-year mean of 2.32x.

CFRA maintained its earnings per American Depositary Share forecast at CNY4.00 for 2025 and CNY7.93 for 2026, suggesting continued confidence in the company’s bottom-line performance despite top-line growth concerns.

In other recent news, Bilibili reported its third-quarter earnings for 2025, which fell short of market expectations. The company’s earnings per share (EPS) were $1.29, missing the anticipated $1.46, an 11.64% negative surprise. Revenue also did not meet forecasts, coming in at $7.34 billion compared to the expected $7.65 billion, a 4.05% shortfall. Despite these results, Benchmark raised its price target for Bilibili to $29 from $28, maintaining a Buy rating. The firm highlighted Bilibili’s strengthened growth outlook, particularly in the advertising and gaming segments. Similarly, Morgan Stanley increased its price target to $25 from $23, citing Bilibili’s profit exceeding analyst expectations, while keeping an Equalweight rating. These developments reflect a mixed outlook for the company, with analysts adjusting their forecasts based on recent performance.

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