JPMorgan Upgrades Bilibili (BILI) to Neutral, 'More positive on near-term share price outlook'

(Updated - March 11, 2024 3:28 AM EDT)

JPMorgan analyst Daniel Chen upgraded Bilibili (NASDAQ: BILI) from Underweight to Neutral with a price target of $11.00 (from $10.00).

The analyst comments "We upgrade Bilibili from UW to Neutral with new PTs of US$11/HK$85. We downgraded the stock to UW in July 2023, but now view the risk/reward as more balanced, as: 1) management’s double-digit revenue growth target for 2024 is in line with consensus (+14% YoY), thus we think consensus forecast cuts will be limited. However, we also believe that the actual achievement of double-digit revenue growth in 2024 will require good performance of new game pipelines and resilient growth in live streaming (we think Bilibili is facing competition from Douyin in the game streaming market, after Douyin’s recent cooperation with Tencent in major games). 2) Bilibili is entering a new game launch cycle from 2Q24 with major games Three Kingdom and Heaven Burns Red, which should drive game revenue reacceleration. 3) Bilibili achieved two quarters of positive operating cashflow in 3Q/4Q23, and targets to reach non-GAAP OP breakeven in 3Q24. With these catalysts, we think share price downside is limited in the next 3-6M. Furthermore, stronger-than-expected performance of new games could drive share price outperformance."

For an analyst ratings summary and ratings history on Bilibili click here. For more ratings news on Bilibili click here.

Shares of Bilibili closed at $11.13 yesterday.

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