2023-03-13 10:43:23 ET
- Bilibili ( NASDAQ: BILI ) shares surged more than 7% in early trading on Monday as Bank of America upgraded the Chinese video-sharing site, citing better cost controls and a friendlier regulatory environment.
- Analyst Lei Zhang raised the firm's rating on Bilibili ( BILI ) shares to buy from neutral, noting that in addition to better cost controls, it's likely the company will "breakeven" in 2024 as the ad business continues to see 20% year-over-year growth. In addition, the company is refinancing its debt and a recent equity offering is helping to improve its cash flow.
- "We turn more positive on Bili’s core ad and game businesses amid macro recovery and the resumption of game licensing," Zhang wrote in an investor note, adding that Bilibili ( BILI ) is likely to launch six or seven games in China and overseas starting in the second-quarter.
- In addition, a potential hit game, known as Pretty Derby , is pending for licensing, though the company's in-house game development is also taking time.
- Earlier this month, investment firm Citi upgraded Bilibili ( BILI ) despite reporting a mixed earnings report .
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Bilibili jumps as Bank of America upgrades, citing improved cost controls, regulatory