XD INC's stock price surged 5.49% during intraday trading on Tuesday, reflecting strong investor confidence in the company's prospects.
The significant upward movement follows Huachuang Securities' initiation of coverage on XD INC with a Strong Buy rating and a target price of 100.9 HKD, which represents substantial upside potential from current trading levels. The brokerage's in-depth report highlighted the company's continuously validated game development capabilities and the thriving ecosystem of its TapTap platform.
Further supporting the positive sentiment is the company's active share repurchase program. According to recent filings, XD INC reduced its total issued shares by 3.13 million during May through buybacks and cancellations, signaling management's confidence in the company's intrinsic value. This corporate action, combined with the company's reported 15% year-over-year revenue growth to 5.76 billion RMB, provides fundamental support for the stock's performance.
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