Many large banks have collectively raised the target price of JOYY, Inc. Sponsored ADR Class A (JOYY.US) as strong advertising growth sparks market expectations.

After announcing its performance for the third quarter of 2025, JOYY, Inc. Sponsored ADR Class A group (JOYY.US) once again attracted the attention of the capital market. The company's strong growth in advertising business has become the focus of the market, leading multiple international investment banks to raise their target prices for JOYY, Inc. Sponsored ADR Class A, and generally optimistic about the company's growth potential in the coming years. Institutions such as Huatai, Credit Agricole, and Citigroup recently released research reports, giving separate valuations to JOYY, Inc. Sponsored ADR Class A's advertising business and significantly raising their target prices: Huatai raised its target price from $71.9 to $84.2; Credit Agricole increased from $58 to $80; Citigroup raised from $59 to $70; Deutsche Bank Aktiengesellschaft, China Securities Co., Ltd., BOCI, CICC, and GF Securities, among other institutions, have also significantly raised their target prices against the background of enhanced growth expectations in 2026, with the highest reaching $86. The major banks unanimously believe that the sequential growth of JOYY, Inc. Sponsored ADR Class A's live broadcasting business, the accelerated expansion of the advertising business, the safety margin brought by net cash, and the continuous shareholder returns provide strong support for its valuation. Institution believes that the advertising technology track has produced a dark horse, and institutions believe "it's time to value the strong advertising business" JOYY, Inc. Sponsored ADR Class A group's advertising revenue has become a highlight of the market, especially BIGO Ads achieved a 33% and 19.7% year-on-year and quarter-on-quarter growth in the third quarter of 2025, with third-party advertising revenue increasing by 25% quarter-on-quarter, significantly ahead of the top peers in the global advertising technology sector. The outperformance of BIGO Ads has made the market very optimistic about the future development of JOYY, Inc. Sponsored ADR Class A's advertising business. Citigroup, Credit Agricole, and Huatai have all included the advertising business in their latest research reports, showing that institutions have a full understanding of the independent value of the advertising business. In its latest research report, Citigroup pointed out that the performance of the advertising business in the third quarter was particularly outstanding, with management maintaining high confidence in the sustained double-digit growth prospects of advertising technology (adtech) and SaaS business driven by traffic expansion, category expansion, and new market development. Citigroup expects advertising revenue to accelerate significantly year-on-year in the fourth quarter and is expected to continue this momentum into 2026. Benefiting from the strengthening of advertising business momentum and the improvement of revenue structure, Citigroup has raised its revenue forecast for JOYY, Inc. Sponsored ADR Class A for 2025-2027 by 2%/4%/6%. Credit Agricole pointed out that JOYY, Inc. Sponsored ADR Class A's advertising business is opening up valuation imagination space and predicts that the business will achieve over 30% year-on-year growth in the 2026 fiscal year. Huatai believes that advertising has opened up the company's second growth curve and is still in the expansion stage, expected to drive overall revenue growth. Citigroup emphasized more clearly that "it's time to value the strong advertising business", with many institutions collectively raising JOYY, Inc. Sponsored ADR Class A's target price significantly and giving a "buy" rating. Stable base brings in cash profits from live streaming JOYY, Inc. Sponsored ADR Class A's "profit + growth" dual attributes will outperform the market With the continuous high growth of JOYY, Inc. Sponsored ADR Class A's advertising business, the quarter-on-quarter rebound in live streaming business also provides strong support for the company's steady revenue growth. China Securities Co., Ltd. and GF Securities have both noticed the third quarter of 2025 continued the trend of business structure improvement of "live streaming repair, advertising acceleration". JOYY, Inc. Sponsored ADR Class A's live streaming business focuses on high-quality development, combining AI to enhance the interactive experience, continually optimizing operations in developed countries and markets such as Southeast Asia, Achieved quarter-on-quarter growth for two consecutive quarters. Institutions point out that with the strengthening momentum of live streaming business in the second half of the year, it is expected to remain stable next year, continuously outputting cash profits; at the same time, programmatic advertising shows explosive power, which will continue to accelerate the growth trend and is expected to drive the overall revenue growth in 2026. In addition to the strong growth of the advertising and live streaming business, the solid financial condition of JOYY, Inc. Sponsored ADR Class A group is also one of the reasons why many institutions are optimistic. According to CICC's research report, JOYY, Inc. Sponsored ADR Class A's net cash reserve is as high as $3.3 billion, providing strong support for the company's future business expansion, repurchases, and dividends, among other shareholder return measures. It is worth noting that JOYY, Inc. Sponsored ADR Class A's free cash flow and shareholder returns are also steadily increasing. In the third quarter of 2025, JOYY, Inc. Sponsored ADR Class A has implemented repurchases and dividends of approximately $240 million, with a shareholder return rate of 7.7%. Credit Agricole pointed out that with an annual shareholder return of about 10%, a stable live streaming business as a cash cow, and continued growth of the advertising business, JOYY, Inc. Sponsored ADR Class A possesses the dual attributes of "profit + growth" and maintains a "outperform the market" rating. Many institutions believe that as the advertising business grows and the revenue structure changes, JOYY, Inc. Sponsored ADR Class A's overall profitability will increase, and they are optimistic about the company's long-term prospects.