Experts recommend Rapid7 as a strong buy. What about Huya?

Experts recommend Rapid7 as a strong buy. What about Huya?

The stock markets rallied on Monday after the long weeks of decline. Investors are hopeful that the coronavirus pandemic began weakening. While the markets have seen lots of sell-offs during the last months, experts recommend buying some stocks which are bound to gain this year.

Rapid7 is one of such stocks. Using data and analytic solutions, this cybersecurity company provides customers with the ability to detect and control their exposure to digital threats.

Rapid7 beat the earnings forecast with a 3-cent EPS in the fourth quarter, and its revenue came in at $91.7 million, showing 33% year-over-year growth.

While the stock hit high in 2019, it fell by 21% in 2020 so far, along with the Dow Jones and the S&P. Still, Rapid7 has a strong niche on the market. So, after it bottomed out on March 16 at $33.40, the stock has climbed 32% already.

Goldman Sachs’s analyst Brian Essex set the price target at $49 for this stock, with an upside potential of 11%. Its shares are currently trading at $44.39, but if the $64.45 price target is met, then the shareholders will gain 45%.

Is the Huya stock equally profitable?

Huya is a game platform, with interactive video services supporting music, anime, e-sports, talent shows, reality programming, and outdoor activities. However, it is available only in China. But don’t forget that China’s domestic web audience surpasses 800 million.

Reaching the enormous Chinese audience, the company has beaten forecasts in the last three quarters, operating consistently at a profit. Furthermore, it’s fourth-quarter revenues grew by 64% to reach $348 million. And EPS came in at 10 cents US, up by 3 cents.

While the lockdowns continue due to the coronavirus, Huya is showing gains as an online gaming company. Goldman Sachs’ analyst Piyush Mubayi stated that Huya’s paying users had reached a record high of 5.5mn according to management. Mubayi set a price target at $21, suggesting a 24% upside potential for the stock.

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