#Singapore #Morgan Stanley #Live Streaming #JOYY

Morgan Stanley Upgrades JOYY's Price Target

In a recent development that signals positive shifts in the streaming landscape, Morgan Stanley has announced an increase in the target price for JOYY (JOYY.US) from $40 to $62. This move reflects an encouraging assessment of JOYY's core business fundamentals, primarily indicating a potential recovery in its live streaming segment.

Key Insights from the Upgrade

As reported by Morgan Stanley, several crucial aspects underpin this upgraded target price. The most noteworthy factor is the perceived stabilization in JOYY's live streaming business. After experiencing stagnation, JOYY reported a 1% quarter-on-quarter growth, suggesting that the worst may have passed, especially following mixed management signals in recent quarters. This optimistic outlook is further supported by expectations for enhanced performance in the second half of 2025 and projected growth trajectory continuing into 2026 and 2027.

Advertising Growth as a Catalyst

In addition to improvements in live streaming, Morgan Stanley highlighted JOYY's advertising sector as a significant growth driver for the coming years. Following an impressive jump of over 175% year-on-year in 2024, JOYY's advertising business has maintained a robust revenue trend in the first half of 2025. Analysts foresee this upward momentum to persist, predicting a 26% growth in the second half of 2025 and an additional 20% in 2026.

Shareholder Returns and Cash Reserves

Moreover, JOYY’s strong cash position and a compelling shareholder return program further bolster their attractiveness. The company has laid out a quarterly dividend policy aimed at returning around $600 million to shareholders over three years, alongside an aggressive $300 million share repurchase scheme during the same period. In the first half of 2025 alone, JOYY committed $135 million to dividends and buybacks, which further enhances investor confidence in the company's financial discipline.

Navigating Challenges

While the long-term outlook appears promising, it is prudent to note that JOYY operates in a highly competitive arena, especially when it comes to live streaming. As competitors adapt quickly to changing consumer preferences and technologies, JOYY's ability to maintain and grow its market share will depend significantly on its innovation and strategic initiatives in both content and technology.

Final Thoughts

In summary, Morgan Stanley's elevation of JOYY's target price is a notable endorsement amid signs of recovery in its core businesses. With a solid foundation in advertising growth and a sincere approach to shareholder returns, JOYY is poised to navigate through industry challenges while potentially unlocking value for its investors in the years to come. As the landscape continues to evolve, all eyes will be on JOYY to see if it can sustain this positive trajectory and secure its place as a leader in the live streaming domain.