Morgan Stanley Downgrades Tuya Inc (TUYA) to Equalweight (Friday)

February 21, 2022 1:05 PM EST
Get Alerts TUYA Hot Sheet
Price: $2.53 +2.85%

Rating Summary:
    1 Buy, 1 Hold, 0 Sell

Rating Trend: Up Up

Today's Overall Ratings:
    Up: 8 | Down: 12 | New: 20
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Morgan Stanley analyst Yang Liu downgraded Tuya Inc (NYSE: TUYA) from Overweight to Equalweight with a price target of $7.20 (from $9.20).

The analyst comments "A debate on whether now is the time to bottom-fish three Chinese software ADRs (Agora, Tuya and OneConnect)has come up after recent share price declines and EV/sales valuations remaining at record lows. We recommend staying on the sidelines as we think there is still room for downward consensus revisions should there be new developments, although much less than before. Also,a lack of any profit/FCFturnaround in the foreseeable future could limit valuation support,especially when unprofitable US SaaS are re-rating rapidly amid concerns about rising interest rates. Also,as net cash gradually becomes a large part of enterprise value, we think the debate between choosing P/S or EV/sales skews unfavorably toward the P/S side."

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

Shares of Tuya Inc closed at $5.70 yesterday.

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