- After a slow premarket, YY (YY +2.3%) and Momo (MOMO +5.1%) are taking off alongside bullish initiations at Citi.
- The firm's Hillman Chan started both companies at Buy with an eye to live streaming upside. The content can improve monetization for Momo, Chan says, looking to 26% CAGR for live streaming from 2017-2020.
- Meanwhile, Chan expects product and content upgrades at YY, and its YY Live product should get 18% revenue CAGR over that same time span. (h/t Bloomberg)
- The firm's price target of $150 for YY implies 13.7% upside; a target of $41 for Momo implies 25.7% upside.