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Bilibili Inc. valuation 'compelling' - Mizuho

Published 06/11/2023, 14:30
Updated 06/11/2023, 14:30
© Reuters.

Mizuho analysts initiated Bilibili Inc . (NASDAQ:BILI) at Buy with a price target of $18 per share in a note to clients on Monday.

The analysts told investors that they expect the company to successfully transition its products to more than double its total addressable market.

In addition, they see the online Chinese video platform accelerating its top-line growth to double digits and reaching profitability in FY2024E.

"These transitions are a natural extension of BILI’s core business, including improving ad monetization through DR (direct response) and expanding into live-streaming," the analysts wrote.

"We view valuation as compelling as BILI is trading on par with peers at 7x FY26E EBITDA despite a 50% faster estimated revenue CAGR from FY23E to FY26E," they added.

BILI shares are up almost 3% premarket, adding to Friday's more than 2% gain. However, the stock has descended 43% in 2023.

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