Gaotu Techedu double upgraded to Buy at Citi after livestream boost

As previously reported, Citi upgraded Gaotu Techedu to Buy from Sell with a price target of $4.50, up from $2.48, after meeting with CFO Shannon Shen. The recent surge in viewership for GaoTu JiaPin’s livestreams, driven by Yuhui Dong’s fans from East Buy, will provide a “significant yet transient boost in engagement,” the analyst tells investors. The event has brought “substantial, albeit intangible,” benefits to GaoTu and the firm’s upgrade reflects positive momentum created by the event, the analyst tells investors.