SINGAPORE, Oct. 14, 2025 -- Morgan Stanley has raised its target price for JOYY (JOYY.US) to US$62 from US$40, reflecting improving fundamentals in JOYY's core business, accelerating advertising growth, and attractive shareholder returns. The firm also highlighted JOYY's robust cash position and attractive shareholder return program as key factors offering downside protection.

Live-streaming business may have bottomed out: Morgan Stanley thinks JOYY's live steaming business may have bottomed out since 2Q25, after reporting 1% QoQ growth and positive management comments on revenue growth. The report expects further QoQ improvement in 2H25 and more growth in 2026-2027.

Advertising business to be the main growth driver in 2026–2027: The report notes that JOYY's advertising business continued its strong revenue momentum in the first half of 2025, following more than 175% year-over-year growth in 2024. Morgan Stanley expects this momentum to persist, forecasting 26% year-over-year growth in 2H25 and 20% in 2026.

Attractive dividends and buybacks of US$300mn annually in 2025-2027: The company previously announced a three-year quarterly dividend policy totaling approximately US$600 million, together with a share repurchase program of up to US$300 million during 2025-2027. In 1H25, JOYY allocated US$135 million to quarterly dividends and share buybacks. Morgan Stanley assumes US$300 million in annual investor returns, including dividends and share buybacks.