Morgan Stanley has resumed coverage of Bilibili with an Overweight rating and a $21 price target.

According to Sina Finance, the bank expects Bilibili’s advertising growth next year to outpace peers and its business to recover, supported by a diversified pipeline of new games. Analysts including Yang Liu also cited healthy user engagement and expanding multi-screen use cases as support for the advertising business.

After a decline in 2026, total gaming revenue is forecast to grow 27% next year, driven by major new games including San Wang and Three Kingdoms: The Ravage of Times. Gross margin is expected to improve while fixed costs remain manageable. Bilibili’s ADR closed at $14.31 in the previous trading session.