HSBC Upgrades Bilibili (BILI) to Buy

HSBC analyst Charlene Liu upgraded Bilibili (NASDAQ: BILI) from Hold to Buy with a price target of $22.50 (from $21.50).

The analyst comments: "We are encouraged to see Sanmou Season 7 (S7) beat our / Street expectations (Ex 8). We turn more constructive on soon to launch S8 in end-May, which contains major updates to game play, maps and characters as the game celebrates its one-year anniversary. We lift game revenue by 6-8% for 2025-27e, overall topline by 2% after also factoring in better-than-expected VAS driven by quality user growth. Ads were in line; we continue to forecast 18% growth in 2025. Better-than-expected 1Q25 margin boosted our confidence in further margin improvement as Bili steps up utilization of AI to improve operating efficiency and drive better user synergies between its platform and Sanmou. We lift adjusted net profit more by 3-15% for 2025-27e. We increase TP to USD22.50 from USD21.50, implying c25% upside. We upgrade the name to Buy from Hold. More resilient performance in high-margin game and ad businesses can support stronger earnings prospects. At 22x 2025e PE versus 48% yoy growth in 2026e non-GAAP EPS, we think valuation is undemanding."

For an analyst ratings summary and ratings history on Bilibili click here. For more ratings news on Bilibili click here.

Shares of Bilibili closed at $18.15 yesterday.

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