Citi analyst Yiwen Zhang raised the price target on DouYu (NASDAQ: DOYU) to $5.90 (from $5.50) while maintaining a Sell rating.

The analyst comments "Douyu reported better-than-feared 3Q24 with revenues of Rmb1.06bn, -22/+3% yoy/qoq, 10/7% above ours/BBG consensus driven by 29% sequential growth in other revenues especially social network and game membership and slower growth deceleration on live-streaming. Non-GAAP net loss also beat ours/Street at Rmb40mn with continued opex control. Regarding 4Q24E outlook, we expect social network and game membership may continue to gain momentum and partly offset deceleration in live-streaming. Heading into 2025E, on top of strict opex control, Douyu may focus on content cost optimization through modification of streamer compensation packages and procurement content negotiation in early next year. Despite near-term impact on content adjustments, management will also prioritize on balancing user traffic and monetization on better cost structure. Post revisions, we adjust our TP to US$5.9 (from US$5.5), based on 0.3x (unchanged) on 2025E revenues of Rmb4.20bn. Maintain Sell."