0254 GMT - Bilibili's earnings recovery outlook is likely brightening in terms of growth and profitability, Citi analysts say in a note. They raise the stock's rating to buy from neutral and maintain a target price of US$28 on its ADR. The bank's primary reason for the rating upgrade is its easing balance-sheet risk and recovering top-line momentum as China reopens and macroeconomic pressure eases. In particular, Citi expects flat revenue in 1Q before revenue resumes on-year growth in 2Q. Bilibili's continuous cost optimization efforts bode well for margins, which could offer further relief to the company's balance sheet, Citi adds. The stock is up 2.6% at HK$173.30. (yifan.wang@wsj.com)
(END) Dow Jones Newswires
March 05, 2023 21:54 ET (02:54 GMT)
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