Analysts have raised JOYY's price target from $56.88 to $59.69, citing an improved outlook as the company's live streaming business stabilizes and advertising emerges as a potential growth driver.
Analyst Commentary
Bullish Takeaways- Bullish analysts highlight that JOYY's live streaming business appears to have stabilized, reducing downside risk to earnings and providing a firmer foundation for future growth.
- Valuation is considered compelling at current levels, with shares viewed as undervalued relative to the company's improving prospects and sector peers.
- Advertising is increasingly seen as a potential new growth engine. This offers diversification beyond the core live streaming operations.
- The company's positioning on a short-term catalyst watch reflects optimism around upcoming catalysts. These could unlock further upside in the stock.
- Some analysts remain cautious about the sustainability of the recovery in live streaming, noting that the sector has faced volatility and competitive pressures.
- Execution risk remains as JOYY seeks to scale its advertising initiatives and deliver meaningful revenue contribution.
- Potential regulatory uncertainties or changes in user trends could disrupt the expected trajectory of growth and affect sentiment.
What's in the News
- From April 1, 2025 to June 30, 2025, JOYY completed the repurchase of 830,000 shares, representing 1.6% of shares outstanding, for $36.5 million under its previously announced buyback program (Key Developments).
- JOYY's board of directors declared a dividend of $0.95 per ADS, or $0.0475 per common share, for the third quarter of 2025. Payment is expected on October 10, 2025 to shareholders of record as of September 22, 2025 (Key Developments).
- For the third quarter of 2025, JOYY issued earnings guidance and expects net revenues to range between $525 million and $539 million (Key Developments).
Valuation Changes
- Fair Value: Consensus analyst fair value estimate has risen slightly from $56.88 to $59.69.
- Discount Rate: The discount rate has fallen modestly from 7.58% to 7.47%.
- Revenue Growth: The projected revenue growth rate is nearly unchanged, declining marginally from 4.00% to 3.97%.
- Net Profit Margin: The expected net profit margin has increased slightly from 11.28% to 11.29%.
- Future P/E: The future price-to-earnings ratio has increased from 11.63x to 12.17x.
Have other thoughts on JOYY?
Create your own narrative on this stock, and estimate its Fair Value using our Valuator tool.
Create NarrativeDisclaimer
AnalystConsensusTarget is a tool utilizing a Large Language Model (LLM) that ingests data on consensus price targets, forecasted revenue and earnings figures, as well as the transcripts of earnings calls to produce qualitative analysis. The narratives produced by AnalystConsensusTarget are general in nature and are based solely on analyst data and publicly-available material published by the respective companies. These scenarios are not indicative of the company's future performance and are exploratory in nature. Simply Wall St has no position in the company(s) mentioned. Simply Wall St may provide the securities issuer or related entities with website advertising services for a fee, on an arm's length basis. These relationships have no impact on the way we conduct our business, the content we host, or how our content is served to users. The price targets and estimates used are consensus data, and do not constitute a recommendation to buy or sell any stock, and they do not take account of your objectives, or your financial situation. Note that AnalystConsensusTarget's analysis may not factor in the latest price-sensitive company announcements or qualitative material.