Expansion Into Live Broadcasting The Right Move For Momo

Loading...
Loading...

JPMorgan initiated coverage on Momo Inc (ADR) MOMO with Overweight rating and $26 price target.

According to the analysts, mobile broadcasting drives top-line growth and profitability improvement. They view Momo as naturally suitable to host live broadcast activities, as demonstrated by the ramp-up of live broadcasting revenue since 1Q16.

The following reasons were provided by the analysts to support this view:

  • The purpose behind live broadcasting fits well with Momo's user base (killing time).
  • User acquisition costs and revenue sharing fees (to performers) are low due to an established user base.

The analysts expect live broadcasting revenue to reach US$214 million/US$418 million in 2016/17, representing 54 percent/61 percent of total revenue.

date
ticker
name
Price Target
Upside/Downside
Recommendation
Firm
Posted In: Analyst ColorInitiationAnalyst RatingsJPMorgan
We simplify the market for smarter investing

Trade confidently with insights and alerts from analyst ratings, free reports and breaking news that affects the stocks you care about.

Join Now: Free!

Loading...