CooTek Inc. (CTK) PT Lowered to $14 at KeyBanc

KeyBanc analyst Hans Chung lowered the price target on CooTek Inc. (NYSE: CTK) to $14.00 (from $15.00) while maintaining a Overweight rating.

Analyst comments: "We expect lower revenue growth in the near to mid-term as CTK is strategically phasing out non-core (Phonebook) business and lowering ad load on global portfolio apps to improve user engagement and grow DAU faster. We view the Company's prioritizing user scale and engagement over monetization as a greater good for the long term given that it will expand the Company's monetization TAM."

As a reminder, CTK announced fourth quarter and full year 2018 unaudited financial results yesterday after market close. Highlights of the earnings release:

• Net revenue was US$47.0 million, an increase of 147% from US$19.0 million during the same period last year.

• Gross profit was US$43.6 million, an increase of 212% from US$14.0 million during the same period last year. Gross profit margin was 92.6%, an increase of 19.3% year-over-year.

• Net income was US$4.1 million, compared to a net loss of US$2.3 million during the same period last year.

• Adjusted net income (Non-GAAP) was US$4.9 million, compared to adjusted net loss (Non-GAAP) of US$2.0 million during the same period last year.

Shares of CTK trade down -18.81%, while SPY trades down -1.00% in late afternoon trading.

You May Also Be Interested In

• Marti Technologies (MRT) PT Raised to $6 at Benchmark on Stronger Growth, Improved Earnings Visibility
• Oppenheimer Reiterates Outperform Rating on NVIDIA (NVDA) Into EPS
• UBS Reiterates Buy Rating on Dutch Bros Inc. (BROS): 'One of Strongest Growth Stories in Restaurants'