BofA Securities has reiterated its Buy rating on Bilibili ahead of the company's earnings in May, foreseeing on-track results driven by an improved ad business and new games for this summer. The firm maintained its $17 price target on the shares and expects an in-line first-quarter result with better ad business. Analysts believe that the positive ad business trend will persist due to the expansion of video/e-commerce streaming-related ad products and resilient game ads during the Chinese new year. They also anticipate an increase in ad revenue growth and some improvement in the game business from the second quarter of 2024 with the launch of new games. Therefore, the analysts have reiterated a Buy rating on Bilibili's stock, citing a positive ad trend and near-term new game launches.
Key Takeaways
- BofA Securities reiterated a Buy rating on Bilibili (NASDAQ:BILI) ahead of the company's earnings, expecting on-track results due to better ad business and new game launches.
- The analysts see an in-line first quarter result with better ad business, driven by the expansion of video/e-commerce streaming-related ad products, resilient game ads during the Chinese new year, and upcoming key game launches.
- The company's first quarter ad revenue growth is raised to 27.5% year-over-year, and full-year ad growth to 26% year-over-year, reflecting a positive ad business trend.
- Analysts expect improvement in the game business from the second quarter of 2024 with new game launches, Wuhua Mixin on April 19, and San Guo: Mou Ding Tian Xia (San Mou) likely in June.
- Bilibili's stock is reiterated a Buy rating citing a positive ad trend and near-term new game launches.
Analysis
Bilibili's positive ad business and new game launches have prompted BofA Securities to reiterate a Buy rating, forecasting on-track results and maintaining a $17 price target. This outlook indicates potential effects on Bilibili's stock performance, as well as the company's revenue growth and business strategy. The expansion of video/e-commerce streaming-related ad products and resilient game ads during the Chinese new year contribute to the positive ad business trend. Additionally, the launch of new games is anticipated to drive improvement in the game business in the second quarter of 2024. Short-term consequences may include stock price fluctuations, while long-term impacts could influence Bilibili's market position and financial performance.
Did You Know?
-
BofA Securities reiterated Buy rating on Bilibili (NASDAQ:BILI) ahead of the company's earnings: This indicates that the BofA Securities maintained their recommendation for investors to buy Bilibili's stock before the company's earnings report, suggesting confidence in the potential for growth and positive performance.
-
Expansion of video/e-commerce streaming-related ad products: This refers to the company's efforts to broaden its advertising offerings in relation to video and e-commerce streaming, likely aiming to attract more advertisers and generate higher revenue from this segment.
-
Wuhua Mixin and San Guo: Mou Ding Tian Xia (San Mou) game launches: These upcoming game launches are expected to contribute to the improvement in the game business for Bilibili from the second quarter of 2024, indicating the company's strategic focus on expanding its gaming portfolio.