HUYA Inc. (NYSE: HUYA) is China's most popular game live streaming platform, with a large and active community of live game streamers. The company collaborates with e-sports event organizers, major game developers, and publishers, and e-sports live streaming has become one of the most popular content genres on its platform. The business has created an interactive and immersive community for China's young game fans. HUYA had 237.33 million American Depository Shares (ADS) listed and outstanding (each ADS representing one Class A ordinary share).
Why should Investors make an Exit?
Valuation Methodology: Price/Sales Per Share-based Multiple Based Relative Valuation
Analysis by Kalkine Group
HUYA's share price has remained on a bearish trend, fallen 69.24% in the past nine months and is currently leaning towards the lower-band of its 52-week range of USD 3.23 to USD 26.98. We have valued the stock using the Price/sales multiple based relative valuation methodology and arrived at a target price of USD 4.23.
Considering the current trading levels, continuous decline in margins, geopolitical risks, current valuation, and other technical indicators, we recommend a "Sell" rating on the stock at the closing price of USD 5.09, up 39.84% as of March 16, 2022. Markets are trading in a highly volatile zone currently due to certain macro-economic issues and geopolitical tensions prevailing.
Three-Year Technical Price Chart (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.