Agora downgraded to Neutral at BofA on low growth visibility

As previously reported, BofA analyst Daley Li downgraded Agora to Neutral from Buy with a price target of $2.63, down from $4, following the company’s Q2 results and lower-than-expected Q3 revenue guidance. Given low growth visibility on a soft demand outlook, the firm thinks a profitability improvement will take time, but adds that it thinks further stock de-rating could be limited given the company’s net cash of $3.70 per ADS.