Jefferies raises Tuya stock price target to $3.60 on AIoT growth potential

Published 27/08/2025, 17:44
Jefferies raises Tuya stock price target to $3.60 on AIoT growth potential

Investing.com - Jefferies raised its price target on Tuya Inc (NYSE:TUYA) to $3.60 from $3.49 on Wednesday, while maintaining a Buy rating on the stock. The company’s stock has shown remarkable momentum, delivering a 49.76% return year-to-date.

The firm cited Tuya’s second-quarter revenue growth of 9% and net profit increase of 302%, attributing the performance to stable gross margins and strong operational leverage. InvestingPro data reveals impressive financial health metrics, with a current ratio of 7.25 and virtually no debt, supporting the company’s operational strength.

Jefferies noted that while IoT PaaS and Smart solution growth slowed due to U.S. tariff impacts, the company’s SaaS business remained resilient.

The investment bank believes Tuya is well-positioned to benefit from increasing AIoT adoption, highlighting that 93% of the company’s device categories contain AI functions and enable large developer-led AI agent creation.

Jefferies considers Tuya’s valuation attractive at 14x 2026 estimated ex-cash PE, 1.1x PEG, and approximately 4% dividend yield, with the firm stating that tariff headwinds are largely priced into the stock.

In other recent news, Tuya Inc reported its Q2 2025 earnings, meeting analysts’ expectations with earnings per share of $0.03. The company slightly exceeded revenue forecasts, reporting $80.1 million compared to the anticipated $78.75 million. These results highlight a steady financial performance for the quarter. Additionally, there have been no new reports of mergers or acquisitions involving Tuya Inc. Analyst firms have not issued any recent upgrades or downgrades for the company. No other significant company developments have been reported at this time. These recent developments provide investors with a factual overview of Tuya Inc’s current financial status.

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