Bilibili (BILI, Financial), a popular Chinese video-sharing platform, saw its stock price rise by 4.56% to $23.17 in pre-market trading. The surge comes after a research report from Lyon predicted strong third-quarter results for the company, driven by a turnaround in its gaming business and robust growth in advertising revenue.
Lyon expects Bilibili's quarterly revenue to increase by 27% year-over-year, reaching 7.4 billion yuan, and adjusted earnings before interest and taxes (EBIT) to turn positive at 181 million yuan. The firm also raised its adjusted net profit forecasts for Bilibili for the next two years by 8% to 10%. Consequently, Lyon adjusted its American Depository Receipt (ADR) target price from $16.8 to $25, maintaining a "market outperform" rating.
