bilibili (NASDAQ: BILI) Shares rose 11% on Friday after Barclays upgraded the Chinese technology company to overweight from equal weight following its second-quarter results.
Barclays said the company delivered much better than expected second-quarter results, driven by the successful launch of its The new game and continued growth in the advertising business. The brokerage also raised its price target on the stock from $14 to $19, implying an increase of almost 47% to the last close.
Bilibili shares were trading at $14.37 on Friday morning.
“Equally impressive is that BILI achieved gross margins of ~30% in Q2, a quarter ahead of forecast, and expects significant QoQ gross margin growth in Q3 as high-margin gaming revenue and advertising revenue far outweigh its low-margin VAS business,” Barclays analysts added.
Earlier on Thursday, Nomura Securities also upgraded the company's rating to Buy from Neutral, citing its “vibrant” community.
Seeking Alpha analysts and Seeking Alpha Quantitative Ratings rate the stock as a Hold, while Wall Street rates it a Buy. The stock has gained 16% so far this year.
