Procore signs multi-year strategic collaboration agreement with AWS
On Tuesday, Jefferies analyst Thomas Chong adjusted the price target for HUYA Inc . (NYSE:HUYA) shares, bringing it down to $4.70 from the previous $5.00, while reaffirming a Buy rating on the company’s stock. The stock, currently trading at $3.73, has shown remarkable momentum with a 47.88% gain year-to-date. Despite the lower price target, the analyst’s outlook remains positive based on the company’s recent financial performance and future prospects. According to InvestingPro analysis, HUYA appears undervalued at current levels.
HUYA, a leading game live streaming platform, reported its fourth-quarter earnings, which revealed that its revenue met expectations while non-GAAP earnings surpassed consensus. While the company maintains a gross profit margin of 10.7%, its robust cost management strategies have helped improve performance. The company’s management pointed out the typically weak seasonality of livestreaming in the first quarter of the year. InvestingPro subscribers can access 12 additional key insights about HUYA’s financial health and growth prospects through exclusive ProTips.
Looking ahead into 2025, Jefferies has adjusted its expectations for HUYA’s livestreaming revenue, yet it anticipates a slight year-over-year (YoY) revenue growth. This projected increase is believed to be fueled by the company’s diversified income streams, including game-related services, advertising, and other revenues.
Moreover, the analyst highlighted the potential role of artificial intelligence (AI) in enhancing the platform’s user experience. AI is expected to aid users in searching content more efficiently and in improving real-time interactions on the platform.
Despite the adjustment in the price target, the analyst’s continued endorsement of a Buy rating indicates confidence in HUYA’s long-term growth trajectory and its ability to navigate the challenges within the livestreaming sector.
In other recent news, HUYA Inc. announced its fourth-quarter 2024 earnings, revealing significant misses on both earnings per share (EPS) and revenue expectations. The company reported an EPS of $0.01, falling short of the forecasted $0.25, while revenue came in at $1.49 billion, below the anticipated $1.54 billion. Despite these shortfalls, HUYA demonstrated a 25.6% year-over-year increase in total net revenues, reaching RMB 6.08 billion. The company has also been focusing on its strategic transformation, emphasizing game-related services and advertising revenues, which now account for 21.9% of total net revenues.
Additionally, HUYA plans to distribute a total of no less than $400 million in dividends from 2025 to 2027. The company is also leveraging AI technologies to enhance content production and distribution, aiming to innovate and expand its offerings. Analyst feedback from firms like Citi and HSBC highlighted HUYA’s focus on expanding game distribution and joint operations with game developers. The company has made strides in its business transformation, with revenues from game-related services, advertising, and others nearly doubling year over year. These developments reflect HUYA’s ongoing efforts to diversify its revenue streams and enhance shareholder returns.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.