BofA Securities Initiates Coverage of Tuya Inc (TUYA) at Neutral as the Leading Platform Provider for IOT
- S&P 500, Dow end at record highs as weak jobs data eases rate worries
- U.S. Added Only 266,000 Jobs in April, Well Below Estimates
- Roku (ROKU) Surges After Crushing Profit Estimates to Prompt an Upgrade to 'Buy' at Loop Capital
- Dollar broadly weaker after U.S. jobs data disappoint
- Square (SQ) Tops Q1 EPS by 25c
Get inside Wall Street with StreetInsider Premium. Claim your 1-week free trial here.
BofA Securities analyst Emerson Chan initiates coverage on Tuya Inc (NYSE: TUYA) with a Neutral rating and a price target of $25.00. The company's value proposition enables OEMs and brands to transform their traditional products, such as home appliances, into software-enabled smart devices. As more brands initiate IoT initiatives, Tuya’s end-to-end solutions are utilized to address cost, time and complexity to develop IoT platforms in-house.
The analyst stated "We believe Tuya will continue to leverage China’s strong presence in OEM and capture the uptake of IoT penetration (only 4%) in the large and expanding market (US$172bn IoT PaaS TAM). We estimate revenue to post a rapid 67% CAGR in 2020-23, and rising scale to drive GPM to 50% in 2023. Our US$25 PO is based on 28.4x EV/Rev in 2022, 25% premium to the average of cloud development platform & infrastructure software peers. Our target EV/Rev implies 25% discount to peers average EV/GP/growth (taking into account GPM and growth profile), which factors in the risk of less scalable growth due to its reliance on chip/hardware."
Shares of Tuya Inc closed at $19.50 yesterday.
Serious News for Serious Traders! Try StreetInsider.com Premium Free!
You May Also Be Interested In
- Thales SA (HO:FP) (THLEF) PT Raised to EUR105 at Goldman Sachs
- Trisura (TSU:CN) (TRRSF) PT Raised to Cdn$180 at TD Securities
- Western Forest Products (WEF:CN) (WFSTF) PT Raised to Cdn$3 at TD Securities
Create E-mail Alert Related CategoriesAnalyst Comments, Hot New Coverage, New Coverage
Sign up for StreetInsider Free!
Receive full access to all new and archived articles, unlimited portfolio tracking, e-mail alerts, custom newswires and RSS feeds - and more!