CITIC Securities recently issued a research report initiating coverage on JOYY Group (JOYY.US) with a 'Buy' rating and set a target price of $97 for 2026, indicating significant upside potential from the current share price.
According to Zhitong Finance, CITIC Securities recently issued a research report covering JOYY Group (JOYY.US) for the first time. It assigned a 'Buy' rating and set a target price of $97 for 2026, indicating significant upside potential from the current stock price.
The report highlights that JOYY represents an investment opportunity with both value and growth potential. From a valuation perspective, the company's current market capitalization is lower than its net cash balance (approximately $3.3 billion as of Q2 2025). According to company announcements, the shareholder return plan for 2025-2027 includes: a share repurchase program of approximately $300 million and cash dividends totaling about $600 million ($50 million per quarter), resulting in an annualized shareholder return rate of approximately 10%, further enhancing its investment appeal. Meanwhile, after adjustments, the company’s traditional live streaming business stabilized on a quarter-over-quarter basis in Q2 2025 and is expected to provide stable cash flow going forward.
From a growth perspective, the global third-party programmatic advertising sector is experiencing rapid expansion, with companies such as Applovin and Mobvista achieving strong performance. JOYY's BIGO Ads platform leverages first-party data accumulated through its own entertainment and e-commerce ecosystem, combined with shared cost structures from its live streaming operations, enabling it to compete in third-party data markets with lower customer acquisition costs (CPI). Currently, this advertising business remains in the early stages of accelerated growth. Analysts expressed optimism regarding the rapid expansion of the company’s third-party advertising business, which could drive a shift in JOYY’s investment narrative from value to growth.
Analysts emphasized that JOYY’s fundamentals remain solid and are improving. Its overseas live streaming business has stabilized on a quarter-over-quarter basis, while its overseas advertising business is experiencing high year-over-year growth. As advertising revenue scales up and profitability rebounds, JOYY is poised for a potential revaluation.
