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Investing.com - CFRA raised its price target on Bilibili (NASDAQ:BILI) to $32.00 from $25.00 on Wednesday, while maintaining a Hold rating on the Chinese video platform’s stock. The stock, currently trading at $28.08, has shown remarkable momentum with an 81% return over the past year. According to InvestingPro analysis, Bilibili is currently trading above its Fair Value.
The price target increase follows Bilibili’s strong first-half 2025 results, which showed revenue growing 21.6% year-over-year to CNY14.34 billion. This growth was driven by a 68% increase in mobile games revenue and a 20% rise in advertising revenue to CNY4.45 billion, marking the company’s first interim profit. The company, now valued at $11.4 billion, maintains strong financial health with an "GREAT" rating from InvestingPro, supported by a healthy current ratio of 1.6 and more cash than debt on its balance sheet.
User metrics remained robust with daily active users reaching 109 million in June, up 7% year-over-year, while average daily time spent increased 6% to 105 minutes. The platform now has 270 million official members, representing an 11% increase from the previous year. This user growth has contributed to a solid 22.7% revenue increase over the last twelve months. Get access to 12+ additional exclusive InvestingPro insights about Bilibili’s growth trajectory and market position.
CFRA believes Bilibili’s focus on Gen Z+ users, who make up 70% of its user base with an average age of 26, and the successful rollout of its exclusive game San Guo will sustain growth momentum. The firm also notes that AI integration in advertising provides additional growth opportunities.
The research firm expects continued profitability with mid-single-digit net margins in the second half of 2025, maintaining its earnings per ADS forecast at CNY4.00 for 2025 and CNY7.93 for 2026.
In other recent news, Bilibili reported its second-quarter 2025 earnings, achieving an earnings per share of $1.29, which exceeded analysts’ expectations of $1.20. The company’s revenue reached $7.34 billion, slightly surpassing the anticipated $7.33 billion. Despite these positive results, investor concerns about future growth led to stock price fluctuations. Several analyst firms have adjusted their price targets for Bilibili. Morgan Stanley increased its price target to $23, maintaining an Equalweight rating due to a revised valuation model. Benchmark lowered its target to $28, citing a positive outlook for Bilibili’s gaming and advertising segments. Barclays also raised its target to $28, highlighting margin expansion and consistent growth in the advertising sector. Meanwhile, Jefferies adjusted its target to $28, noting that Bilibili’s non-GAAP operating profit exceeded forecasts due to lower sales and marketing expenses.
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