Huya downgraded to Neutral at BofA with core streaming business weakening

As previously reported, BofA downgraded Huya (HUYA) to Neutral from Buy with a price target of $4, down from $5.80. The firm contends that the core live-streaming business continues to see weakness amid a macro slowdown and tightening regulatory environment; new businesses take time to grow and the game operation and game ad market are also competitive; and positive shareholder returns are largely priced in.