HUYA Inc. (NYSE:HUYA) Just Reported And Analysts Have Been Lifting Their Price Targets

Last week saw the newest quarterly earnings release from HUYA Inc. (NYSE:HUYA), an important milestone in the company's journey to build a stronger business. Following the result, the analysts have updated their earnings model, and it would be good to know whether they think there's been a strong change in the company's prospects, or if it's business as usual. Readers will be glad to know we've aggregated the latest statutory forecasts to see whether the analysts have changed their mind on HUYA after the latest results.

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Taking into account the latest results, the consensus forecast from HUYA's eleven analysts is for revenues of CN¥6.45b in 2025. This reflects a reasonable 5.6% improvement in revenue compared to the last 12 months. HUYA is also expected to turn profitable, with statutory earnings of CN¥0.36 per share. In the lead-up to this report, the analysts had been modelling revenues of CN¥6.30b and earnings per share (EPS) of CN¥0.52 in 2025. So it's pretty clear the analysts have mixed opinions on HUYA after the latest results; even though they upped their revenue numbers, it came at the cost of a pretty serious reduction to per-share earnings expectations.

See our latest analysis for HUYA

The analysts also upgraded HUYA's price target 6.0% to US$4.29, implying that the higher revenue expected to generate enough value to offset the forecast decline in earnings. There's another way to think about price targets though, and that's to look at the range of price targets put forward by analysts, because a wide range of estimates could suggest a diverse view on possible outcomes for the business. Currently, the most bullish analyst values HUYA at US$6.61 per share, while the most bearish prices it at US$2.40. The narrow spread of estimates could suggest that the business' future is relatively easy to value, or thatthe analysts have a strong view on its prospects.

Another way we can view these estimates is in the context of the bigger picture, such as how the forecasts stack up against past performance, and whether forecasts are more or less bullish relative to other companies in the industry. One thing stands out from these estimates, which is that HUYA is forecast to grow faster in the future than it has in the past, with revenues expected to display 11% annualised growth until the end of 2025. If achieved, this would be a much better result than the 14% annual decline over the past five years. Compare this against analyst estimates for the broader industry, which suggest that (in aggregate) industry revenues are expected to grow 11% annually. So while HUYA's revenues are expected to improve, it seems that it is expected to grow at about the same rate as the overall industry.

The Bottom Line

The biggest concern is that the analysts reduced their earnings per share estimates, suggesting business headwinds could lay ahead for HUYA. They also upgraded their revenue forecasts, although the latest estimates suggest that HUYA will grow in line with the overall industry. There was also a nice increase in the price target, with the analysts clearly feeling that the intrinsic value of the business is improving.

With that in mind, we wouldn't be too quick to come to a conclusion on HUYA. Long-term earnings power is much more important than next year's profits. We have estimates - from multiple HUYA analysts - going out to 2027, and you can see them free on our platform here.

You still need to take note of risks, for example - HUYA has 1 warning sign we think you should be aware of.

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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.