Update shared on 12 Nov 2025
Fair value Increased 4.81%Analysts have raised JOYY's price target from $59.69 to $62.56, citing improved growth prospects and the company's undervalued stock, driven by potential catalysts in its live streaming and advertising businesses.
Analyst Commentary
Bullish Takeaways
- Bullish analysts highlight that JOYY's live streaming business appears to have reached a trough. This suggests potential for a rebound in user engagement and revenue growth.
- The introduction of a 90-day catalyst watch reflects optimism around upcoming developments that could positively influence JOYY’s valuation in the near term.
- Advertising is recognized as a promising new growth driver. Analysts expect advertising to diversify the company’s revenue streams beyond live streaming.
- Many view the stock as undervalued at current levels, citing an attractive entry point relative to the company’s growth outlook and the potential for upward re-rating.
Bearish Takeaways
- Some analysts remain cautious about the sustainability of recent gains, particularly if expected catalysts do not materialize as anticipated.
- Questions persist regarding the pace at which JOYY can scale its advertising segment to effectively augment overall earnings.
- Execution risk is cited, especially as JOYY navigates a competitive market landscape and seeks to reinvigorate its core business segments.
- There are concerns that macroeconomic pressures or shifting user trends could temper the company’s growth trajectory and potentially limit upside.
What's in the News
- From April 1, 2025 to June 30, 2025, JOYY repurchased 830,000 shares, representing 1.6% of its shares, at a total cost of $36.5 million. This completes the buyback announced in March 2025. (Key Developments)
- JOYY's board declared a dividend of $0.95 per ADS, or $0.0475 per common share, for Q3 2025. The dividend is payable on October 10, 2025 to shareholders of record as of September 22, 2025. (Key Developments)
- The company issued revenue guidance for Q3 2025, projecting net revenues between $525 million and $539 million. (Key Developments)
Valuation Changes
- Fair Value Estimate: Increased from $59.69 to $62.56, reflecting a modest upward adjustment in JOYY’s assessed intrinsic value.
- Discount Rate: Rose slightly from 7.46% to 7.82%, indicating a marginally higher required rate of return for investors.
- Revenue Growth: Edged up from 3.97% to 4.18%, signaling a small improvement in the company’s projected top-line growth.
- Net Profit Margin: Increased from 11.29% to 11.54%, suggesting slightly better profitability expectations.
- Future P/E Ratio: Nudged higher from 12.17x to 12.53x, implying a modest upward shift in the future earnings multiple applied by analysts.
Disclaimer
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