Lyon: Bilibili target price raised to $29.1, maintains "outperform" rating.

Lyon released a research report stating that Bilibili's performance in the third quarter met expectations, with total revenue growing by 5.2% year-on-year to 7.7 billion yuan, and adjusted EBIT reaching 688 million yuan. Advertising revenue accelerated to a 23% year-on-year growth, mainly driven by increased ad loading rates, expansion in vertical sectors, and the application of AI tools. Due to strict cost control, profitability further improved. The bank expects the company's total revenue in the fourth quarter to grow by 5% year-on-year, with advertising revenue increasing by approximately 22% year-on-year; it is also expected that profits could further increase to around 790 million yuan. The bank also believes that the mobile gaming business will begin to recover with the launch of new titles in the second half of 2026. The bank raised its adjusted net profit forecasts for 2025 and 2026 by 14% and 7%, respectively. The target price for Bilibili's American stock has been raised from $25.5 to $29.1, while maintaining an "outperform" rating.