Bilibili ( NASDAQ: BILI ) is 4.7% higher , making a strong move for a second day in a row and pacing toward a three-session win streak, following an upgrade to Buy at Citi.
Bilibili stock ( BILI ) jumped 9.7% Thursday after positive reaction to a mixed earnings report , where some analysts characterized some light 2023 guidance as conservative .
Now Citi is joining the reactions, as analyst Brian Gong upgraded to Buy based on catalysts ahead.
Losses are continuing to narrow, and recent offerings suggest that balance sheet risks are "largely relieved," he said.
"Bili is still committed to achieve profit breakeven by 2024," he added. "Optimization on revs sharing ratio and bandwidth cost will continue, and Bili will become more selective on content investment."
That 2023 guidance indicates that management expects gaming, ads and value-added services in aggregate to top 20% year-over-year growth, but for e-commerce and other revenues to fall 25-30%, on cutting low-margin businesses.
And while Citi is modeling flat first-quarter revenues, it's expecting growth to pick up from the second quarter on, given new game launches and re-acceleration of VAS.
Gong is "tweaking" some conservative revenue forecasts for 2023-24, but raising his margin estimates to account for new guidance.
His price target of $28 implies 24% upside.
For more, dig into the company's earnings presentation and Seeking Alpha's transcript of Bilibili's earnings conference call .
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Bilibili gains another 5% as Citi boosts to Buy on narrowing losses