Bilibili price target lowered to $12 from $16 at Bernstein

Bernstein lowered the firm’s price target on Bilibili to $12 from $16 and keeps a Market Perform rating on the shares. The firm notes Bilibili’s headline Q3 results were largely as the Street expected. Revenue was in-line, non-GAAP gross and operating profit were slightly better than Bernstein and consensus had modeled, while bottom-line missed on account of mark-to-market losses below the line. Critically though ads revenues missed the firm’s estimate and consensus by 4.9% and 2.6%. Full year revenue guidance implied a cut versus consensus, which included a weaker ads revenues outlook than Bernstein had modeled ex ante.