DouYu price target lowered to $5.50 from $6 at Citi

Citi analyst Brian Gong lowered the firm’s price target on DouYu to $5.50 from $6 and keeps a Sell rating on the shares. The company reported “disappointing” Q1 results with sales missing and earnings well below consensus given the “voluntary return” of Rmb112mn due to government authorities’ investigation on certain streamers, the analyst tells investors in a research note. The firm says that although Douyu is not the target of the investigation, it sees persistent pressures that could bring more uncertainty over its operations.