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Hello Group Inc.
Hello Group Inc. (NASDAQ: MOMO) is a major Chinese online social networking and entertainment company. Momo, Tantan, and other MOMO platform products can help people develop new friendships, social connections, and meaningful conversations. The company's main revenue streams are live streaming, value-added, mobile marketing, online gaming, and other services. MOMO had 196.95 million American Depository Shares (ADS) listed and outstanding (each ADS representing two Class A ordinary shares).
Why should Investors make an Exit?
Valuation Methodology: Price/Earnings Per Share Multiple Based Relative Valuation
(Analysis by Kalkine Group)
* % Premium/(Discount) is based on our assessment of the company's NTM trading multiple after considering its key growth drivers, economic moat, stock's historical trading multiples versus peer average/median, and investment risks.
Stock Recommendation:
MOMO's stock price has been volatile throughout the year and has fallen 54.95% in the past twelve months, and is currently leaning towards the lower end of its 52-week range of USD 4.47 to USD 16.64. We have valued the stock using the Price/Earnings-based relative valuation methodology and arrived at a target price of USD 6.28.
Considering the current trading levels, weakening future expectation, fall in paying customers, drop-in topline and bottom-line, current valuation, and associated risks, we recommend a "Sell" rating on the stock at the closing price of USD 7.27, up 51.46%, as of March 16, 2022.
1-Year Technical Price Chart (as of March 16, 2022). Source: REFINITIV, Analysis by Kalkine Group
* The reference data in this report has been partly sourced from REFINITIV.
* All forecasted figures and industry information have been taken from REFINITIV.