Market Overview

YY Can Sustain Its Leadership Position; Goldman Initiates At Buy

YY Can Sustain Its Leadership Position; Goldman Initiates At Buy

Goldman Sachs' Fan Liu initiates coverage of China-based YY Inc (ADR) (NASDAQ: YY) Thursday with a Buy rating and $101 price target as the company has proven itself to be a "pioneer" in live streaming.

YY's dominance in live streaming dates back to the PC era, but as the industry shifted away from desktop devices, the company built an ecosystem, Liu commented. The company's premium content and vertical expansion into outdoor activities and other areas merely adds to the case for owning the stock.

YY Live and its Huya subsidiary both stand to benefit from ongoing improvements in user engagement and retaining, the analyst continued. In fact, the two different platforms have gained a reputation of offering new version updates every three weeks.

Being Bullish On YY

Meanwhile, YY recently completed the necessary financing to either: 1) improve its product portfolio, 2) better target new users, and 3) expand oversees through its own internal development or through an equity investment in an international firm.

Finally, the analyst is bullish on YY's margin visibility outlook, mostly driven by Huya which is expected to see break even next year. This will help YY generate a 27-percent revenue compounded annual growth rate through 2019 and a 33-percent earnings compounded earnings growth over the same time period.

At time of publication, shares of YY were up 3.88 percent at $73.85.

Related Links:

Playing The Emerging Markets Trade With Leveraged ETFs

How Tencent, The 'Chinese Facebook,' Compares To Its US Counterpart

Latest Ratings for YY

Jul 2020UBSMaintainsBuy
Nov 2019NomuraMaintainsBuy
Sep 2019UBSUpgradesNeutralBuy

View More Analyst Ratings for YY
View the Latest Analyst Ratings


Related Articles (YY)

View Comments and Join the Discussion!

Posted-In: Analyst Color Long Ideas Price Target Initiation Analyst Ratings Movers Tech Trading Ideas

Latest Ratings

HYMCBMO CapitalInitiates Coverage On
DEMorgan StanleyMaintains335.0
SBNYRaymond JamesMaintains138.0
CORTHC Wainwright & Co.Maintains32.0
View the Latest Analytics Ratings
Don't Miss Any Updates!
News Directly in Your Inbox
Subscribe to:
Benzinga Premarket Activity
Get pre-market outlook, mid-day update and after-market roundup emails in your inbox.
Market in 5 Minutes
Everything you need to know about the market - quick & easy.
Fintech Focus
A daily collection of all things fintech, interesting developments and market updates.
Thank You

Thank you for subscribing! If you have any questions feel free to call us at 1-877-440-ZING or email us at