.September 3, 2024 03:29:00 PM

JPMorgan analysts increased their price target on JOYY (NASDAQ:YY) to $35 from $30, maintaining a Neutral rating. Despite low valuation and strong cash position, there are no clear catalysts for revenue recovery, impacting investor sentiment.

JOYY’s Q3 2024 guidance predicts weaker revenue due to challenges in live streaming, competition, and revenue sharing optimization. JPMorgan forecasts a 32% YoY decline in adjusted net profit to $56 million, driven by lower gross margin from third-party ads.

Share repurchase programs may mitigate downside risks, while progress on resolving the YY Live deal could boost share price. Price target raised on higher valuation multiple, reflecting buyback execution and discount to Huya.