JOYY, Inc. Sponsored ADR Class A Aktie News

I lift my rating for JOYY to "Buy," considering its capital allocation approach and business mix changes. JOYY boasts a compelling 10.1% shareholder yield, considering its capital return targets and robust cash position. JOYY's advertising division has strong growth potential, which should boost its top-line diversification efforts.

JOYY is transitioning from legacy livestreaming to high-margin non-livestreaming and ads, driving profitability and shareholder returns through dividends and buybacks. Despite revenue declines, the company's strong cash reserves, resilient free cash flow, and improving margins support a stable outlook and potential upside. Valuation remains deeply discounted, offering an attractive entry point ...

JOYY trades at a wide discount to its net cash and intrinsic value, offering significant upside potential. Generous shareholder returns, with a 13%+ combined yield of dividends and buybacks, should help unlock value for investors. I initiate coverage with a buy rating and a price target of $89.71, based on discounted future dividends and the company's cash pile.