UPDATE: Oppenheimer Upgrades Yalla Group Ltd. (YALA) to Outperform
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Oppenheimer analyst Bo Pei upgraded Yalla Group Ltd. (NYSE: YALA) from Perform to Outperform with a $28 price target.
The analyst commented, "Given the stock is 50% off highs, we are upgrading YALA from Perform to Outperform and establishing a $28 12- to 18-month price target as we expect 4Q results to beat the high end of guidance, with strong momentum carried into 1Q. App store rankings of Yalla and Ludo suggest strong in-app purchases in 4Q and our 4Q revenue estimate of $41.2M is 14% above high end of guidance. For 1Q, Ludo's iOS ranking continued to climb, with Yalla being stable (see Exhibits 1 and 2 in the full Company Report). On new apps, YALA launched iOS version Yalla Parchis (Spanish version of Ludo), Yalla Baloot, and 101 Okey in early Feb. with positive early feedback. PT of $28 is 29x '22E EPS, a multiple largely in line with social entertainment peers despite 176% faster growth."
Shares of Yalla Group Ltd. closed at $22.00 yesterday.
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