Fubotv earnings beat by $0.10, revenue topped estimates
On Thursday, Morgan Stanley (NYSE:MS) analysts, led by Yang Liu, increased their price target on shares of Tuya Inc (NYSE:TUYA) to $4.20, up from $3.00, while reiterating an Overweight rating on the stock. The firm cited the company’s recent performance and growth potential as reasons for the adjustment. According to InvestingPro data, Tuya has demonstrated strong momentum with a remarkable 133% return over the past six months, while maintaining a "GREAT" overall financial health score.
The analysts noted that Tuya’s share price has seen significant movement, attributing the rally to market interest in AI themes. The stock has doubled year-to-date, outperforming the MSCI China Index, which rose 18% in the same period. They pointed out that Tuya’s valuation is now at 30 times its estimated 2025 enterprise value to EBIT (EV/EBIT) according to Morgan Stanley estimates. InvestingPro analysis reveals the company is currently trading slightly below its Fair Value, with 14 additional ProTips available to subscribers.
Morgan Stanley’s new price target is based on a 25 times multiple of the company’s projected 2026 Non-GAAP EV/EBIT, factoring in the full cash value of $1 billion. The analysts believe that Tuya’s valuation discovery has already occurred, lagging six quarters behind its fundamental turnaround. However, they anticipate that the company’s continued rapid revenue growth and potential for margin expansion will provide a strong compounding return moving forward.
The analysts also mentioned a forecast of greater than 25% compound annual growth rate (CAGR) in Non-GAAP EBIT post-2026 and significantly improved liquidity, which previously had been a major concern. Supporting this outlook, InvestingPro data shows Tuya’s impressive current ratio of 9.57 and strong revenue growth of 29.84% in the last twelve months. The company’s robust financial position is further evidenced by its minimal debt and healthy cash flow generation. Discover more detailed insights and access the comprehensive Pro Research Report, available exclusively to InvestingPro subscribers.
Overall, Morgan Stanley’s updated analysis reflects confidence in Tuya’s financial prospects, underpinned by strong growth expectations and a favorable liquidity position.
In other recent news, Tuya Inc. disclosed its unaudited financial results for the fourth quarter and the full year ending December 31, 2024. This announcement included the declaration of a dividend, a notable development for the company’s shareholders. While the specifics of the dividend amount and payment date were not detailed in the summary, the declaration itself marks a significant event. The financial results and dividend details were filed in a Form 6-K with the United States Securities and Exchange Commission. Tuya Inc. has indicated that it will continue to file annual reports under Form 20-F, adhering to reporting standards. These developments are part of the company’s compliance with The Stock Exchange of Hong Kong Limited’s reporting requirements. Investors can access the full financial outcomes and dividend information in the exhibits attached to the Form 6-K. These recent developments provide insights into Tuya Inc.’s financial health and strategic direction.
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