JP Morgan sees DouYu's valuation attractive; rates 'overweight'

DouYu International Holdings

28/08/2019 13:14

** China's largest live-streaming platform  DOYU.N  up 3% at
$8.90 premarket
    ** JP Morgan initiates coverage of DouYu International
Holdings Ltd with 'overweight' rating and price target of $13
    ** JPM analyst Daniel Chen believes co's role as a major
game streaming platform in China positions it to be the biggest
beneficiary of the China eSport boom
    ** DOYO debuted at $11.50 last month, and the stock has
fallen 21.6% from its IPO price  urn:newsml:reuters.com:*:nL4N24I0HA
     ** "We attribute Douyu's 27% decline since IPO (vs. MSCI
China -7%) to investor concerns on Kuaishou competition and
limited 2H19 visibility" says JPM
    ** However, JPM sees these concerns as overdone and consider
Douyu's current valuation as an attractive entry point
    ** Chen suggests "investors buy this dip on expectations for
new game launches in 2H19/2020E"
    ** Wall Street's current median PT of $12.75 on DOYU
represents an upside of ~47.6% to stock's last close
    

 (Reporting By Geetha Panchaksharam)
 ((geetha.panchaksharam@thomsonreuters.com))