CLSA Double Downgrades HUYA Inc. (HUYA) to Underperform (4)

February 8, 2021 7:55 AM EST
Get Alerts HUYA Hot Sheet
Price: $18.02 -1.21%

Rating Summary:
    8 Buy, 6 Hold, 1 Sell

Rating Trend: Down Down

Today's Overall Ratings:
    Up: 18 | Down: 8 | New: 31
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CLSA analyst Sally Chan downgraded HUYA Inc. (NYSE: HUYA) from Buy (1) to Underperform (4) with a price target of $27.00 (from $25.00).

The analyst comments "Though Huya 4Q20 results will likely be fine, what keeps investors up at night are livestreaming regulation and anti-trust approval overhangs. The stock has appreciated over the past 2-3 months to reach our previous target price, yet fundamentally not that much has changed. We believe a merger will eventually go through but suspect that some investors would rather wait for a definitive outcome. Final details of livestreaming regulation have yet to be released, where the cap on max tipping amount could dent short-term revenue growth. While unable to model it in, we expect potential negative pressure on share price. We raise our target price from US$25.00 to US$27.00 on a slightly better profit outlook and remain optimistic on Huya’s potential post-merger, but we downgrade from BUY to Underperform in light of the above."

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

Shares of HUYA Inc. closed at $26.40 yesterday.

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