Following the release of its Q3 2025 earnings, JOYY Inc. (JOYY.US) has once again captured the attention of capital markets. The company's robust growth in advertising revenue has become a focal point, prompting multiple global investment banks to raise their price targets and express confidence in its long-term growth potential.
Institutions such as Huatai Securities, CLSA, and Citi have recently published research reports, assigning separate valuations to JOYY's advertising business and significantly increasing their price targets. Huatai raised its target from $71.9 to $84.2, CLSA lifted its target from $58 to $80, and Citi adjusted its target from $59 to $70. Other firms, including Deutsche Bank, CITIC Securities, BOCI, CICC, and GF Securities, also raised their targets, with the highest reaching $86, citing stronger growth expectations for 2026.
Analysts unanimously agree that JOYY's sequential growth in live-streaming, accelerated expansion in advertising, strong net cash position, and consistent shareholder returns provide solid support for its valuation upside.
**Advertising Tech Emerges as a Dark Horse – Analysts Say "Time to Value the Strong Ad Business"** JOYY's advertising revenue has become a standout performer, particularly BIGO Ads, which posted year-over-year and quarter-over-quarter growth of 33% and 19.7%, respectively, in Q3 2025. Third-party ad revenue surged 25% sequentially, outpacing leading global ad-tech peers.
Citi, CLSA, and Huatai have incorporated the advertising segment into their Sum-of-the-Parts (SOTP) valuation models, reflecting institutional recognition of its standalone value. Citi highlighted the segment's strong performance in Q3, driven by traffic expansion, vertical diversification, and new market penetration, with management expressing high confidence in sustained double-digit growth for ad-tech and SaaS businesses.
Citi expects ad revenue to accelerate significantly in Q4 and maintain momentum into 2026. The bank has raised JOYY's 2025–2027 revenue forecasts by 2%/4%/6%, citing improved ad business dynamics and revenue mix. CLSA projects over 30% YoY growth for the segment in FY2026, while Huatai sees advertising as a second growth driver still in expansion mode.
Citi explicitly stated, "It's time to value the strong ad business," as multiple institutions collectively upgraded JOYY's price targets and maintained "Buy" ratings.
**Stable Cash Flow from Live-Streaming Supports "Income + Growth" Dual Appeal** Alongside the rapid expansion of its ad business, JOYY's sequential recovery in live-streaming has also bolstered revenue stability. CITIC Securities and GF Securities noted the company's continued improvement in Q3, marked by "live-streaming recovery and ad acceleration."
JOYY's live-streaming segment emphasizes high-quality growth, leveraging AI to enhance user engagement while optimizing operations in developed and Southeast Asian markets. The business has seen sequential growth for two consecutive quarters, with analysts expecting stable cash flow generation in the coming year.
Meanwhile, programmatic advertising is demonstrating explosive growth, likely sustaining an upward trend and driving overall revenue growth in 2026.
**Strong Financials and Shareholder Returns Add to Appeal** JOYY's solid financial position is another key factor behind institutional optimism. According to CICC, the company holds $3.3 billion in net cash, supporting future business expansion, buybacks, and dividends.
In Q3 2025, JOYY executed approximately $240 million in buybacks and dividends, achieving a 7.7% shareholder return rate. CLSA noted that with an annualized shareholder return of around 10%, stable cash flow from live-streaming, and growing ad revenue, JOYY combines "income + growth" attributes, warranting an "Outperform" rating.
Most analysts remain bullish on JOYY's long-term prospects, anticipating improved profitability as ad revenue growth reshapes its revenue structure.