HSBC downgrades Huya on weaker live-streaming outlook

HSBC downgraded Huya to Hold from Buy with a price target of $4.70, down from $5.42. The firm believes the live-streaming decline may persist longer. It cut estimates for Huya to factor in a weaker live-streaming outlook, reflected by a sharper decline in average revenue per paying user. The recovery pace was slow from July to August, and the trend has deteriorated in September, the analyst tells investors in a research note. HSBC says it needs to see live-streaming revenue recovering more quitter-over-quarter before turning more constructive again on the shares. Huya could lack catalysts until another dividend is announced, adds the firm.