Citigroup recently released a report indicating that Bilibili (BILI, Financial) achieved slightly better-than-expected earnings in the last quarter, primarily due to effective marketing and cost control. Revenue aligned with forecasts. For the current quarter, Citigroup anticipates a slight slowdown in gaming revenue growth, as the new season of "Three Kingdoms" is set to launch soon, potentially dampening overall momentum. However, advertising revenue is expected to continue its upward trajectory, driven by an expanding client base, strong performance, and improved efficiency.
In light of these developments, Citigroup has adjusted its earnings forecast for Bilibili and increased its target price for the company's stock from $20.5 to $23. This revision reflects an overall positive reassessment of China's internet sector, acknowledging robust growth in advertising revenue. Despite the slowdown in gaming momentum and slightly high valuation, Citigroup maintains a "neutral" rating on Bilibili's stock.
