Read Why BofA Resumed Coverage On DouYu

BofA analyst Lei Zhang resumed coverage of DouYu International Holdings Ltd DOYU with an Underperform and price target of $3.30, implying a 29.4% upside.
The re-rating follows the termination of the merger offer with HUYA Inc HUYA.
Zhang sees multiple ongoing regulation changes impacting DouYu's business development.
DouYu is a game-centric live streaming platform in China.
HUYA is a technology-driven content company with live game streaming as its core business and focuses on building a live broadcast platform.
Further, rising competition with Huya and Bilibili Inc BILI will lead to growth pressure "across the board," Zhang says.
Zhang says competition in game streaming is intensifying.
Price Action: DOYU shares closed lower by 0.39% at $2.55 on Thursday.