Ellie Jiang, an analyst from Macquarie, has initiated a new Buy rating on Bilibili (BILI).
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Ellie Jiang’s rating is based on Bilibili’s unique position as a leader in creating a vibrant video community that appeals to younger audiences. The platform’s focus on diverse content and strong user engagement has resulted in significant growth in user traffic, which presents substantial opportunities for monetization through advertising.
Bilibili is currently under-monetized compared to its global peers, with a lower ad load, but it is expected to see robust growth in advertising revenue due to improved ad placement and pricing strategies. Additionally, the company has reached an inflection point for sustainable margin expansion by streamlining operations and focusing on more profitable revenue streams. This positions Bilibili for significant earnings growth, justifying the premium valuation compared to other streaming platforms.
Jiang covers the Consumer Cyclical sector, focusing on stocks such as Alibaba Group Holding Ltd., Tongcheng Travel Holdings Limited, and Alibaba. According to TipRanks, Jiang has an average return of 19.6% and a 67.32% success rate on recommended stocks.
In another report released on October 12, Jefferies also reiterated a Buy rating on the stock with a $34.00 price target.