Analyst Lei Zhang of Bank of America Securities reiterated a Buy rating on Bilibili (BILI – Research Report), with a price target of $23.00.
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Lei Zhang has given his Buy rating due to a combination of factors including the promising outlook of Bilibili’s game and advertising sectors. The company is expected to deliver strong fourth-quarter results, with its gaming division showing consistent performance, particularly with the success of Sanmou Season 5 and the positive reception of the licensed game Jujutsu in the global market. This success is anticipated to continue with updates planned for the summer holidays.
Additionally, Bilibili’s advertising potential is bolstered by the introduction of the Xiaodian function, which is likely to improve e-commerce conversion rates and attract more advertisers. The rapid advancement in AI also presents new opportunities, as Bilibili is poised to benefit from additional marketing dollars from new AI applications, especially those not promoted on Douyin. These factors, combined with a solid revenue and earnings forecast, support the Buy rating, reflecting confidence in Bilibili’s capacity for future growth.
According to TipRanks, Zhang is a 3-star analyst with an average return of 4.9% and a 52.63% success rate. Zhang covers the Communication Services sector, focusing on stocks such as NetEase, Bilibili, and Iqiyi.