HERO - Bilibili Gains Analyst Praise for Advertising Growth Despite Gaming Sector Headwinds | Benzinga
Benchmark analyst Fawne Jiang maintained a Buy rating on Bilibili Inc (NASDAQ:BILI) with a price target of $15, lowered from $21.
Jiang said Bilibili has executed solidly on advertising, with revenue growth accelerated to 28% Y/Y in the fourth quarter.
He expects continued robust ad growth in fiscal 2024, underpinned by growing DAU/traffic, rising ad load via ad placement penetration, and ad tech-driven efficiency improvement.
The analyst flagged the company’s encouraging headways in offering integrated marketing solutions in the e-commerce and gaming verticals. He said they replicate the model for other bourgeoning industries like FMCG, Auto, 3C, internet service, finance, and education.
As per Jiang, the unique valuation of Bilibili’s core user base (young professionals) sets the platform apart for potential outperformance on ads in general.
On the flip side, membership growth will likely remain muted while live streaming faces potentially rising competition as the industry growth is moderating.
Furthermore, Jiang added that there is a ...