Reassessing JOYY (NASDAQ:JOYY) Valuation After Earnings Upgrade and Strong Buy Rating Fuel Growth Expectations

JOYY (JOYY) just landed on a Strong Buy list after its current year earnings estimates jumped nearly 17% in two months, and that upgrade is forcing investors to revisit the stock’s growth story.

See our latest analysis for JOYY.

That backdrop helps explain why, even with the latest share price at $63.19, JOYY’s year to date share price return of 58.85% and 1 year total shareholder return of 81.41% suggest momentum is clearly building as investors reprice its growth and cash returns story.

If JOYY’s rerating has caught your eye and you want to see what else the market is warming up to, now is a good time to explore fast growing stocks with high insider ownership.

Yet with JOYY trading below analyst targets and reportedly valued at a steep discount to its own net cash, investors must ask: is this a rare mispricing, or are markets already banking on years of future growth?

Most Popular Narrative Narrative: 13.0% Undervalued

With the narrative fair value at $72.67 versus JOYY’s last close of $63.19, the story leans toward upside and centers on advertising strength.

The analysts have a consensus price target of $56.875 for JOYY based on their expectations of its future earnings growth, profit margins and other risk factors. However, there is a degree of disagreement amongst analysts, with the most bullish reporting a price target of $70.0, and the most bearish reporting a price target of just $35.0.

Read the complete narrative.

Curious how modest revenue growth, shrinking margins and a re rated earnings multiple can still add up to upside from here? The full narrative unpacks the math, step by step, and reveals which long term profit profile really underpins that higher fair value.

Result: Fair Value of $72.67 (UNDERVALUED)

Have a read of the narrative in full and understand what's behind the forecasts.

However, accelerating BIGO Ads growth and stronger localized user engagement could push revenue and margins above expectations and force investors to rethink today’s conservative assumptions.

Find out about the key risks to this JOYY narrative.

Build Your Own JOYY Narrative

If you see the story differently or want to test your own assumptions against the numbers, you can quickly build a custom view in minutes: Do it your way.

A great starting point for your JOYY research is our analysis highlighting 3 key rewards and 3 important warning signs that could impact your investment decision.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

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