YY: Strong Performance in Music Show Business; Monetization in Education; Upgrade to BUY from HOLD with PT of $94.00
We upgrade YY stock to BUY from HOLD, mainly due to the strong performance in musical show business. According to our proprietary data, we believe there was strong growth in both active users and the number of hosts. In addition, the company started to monetize its education sector starting in 2Q15. Since we believe most of the negatives are out, we upgrade the stock to BUY from HOLD with a price target of $94.00.