Jefferies Initiates Coverage on Tuya with Buy Rating and $3.49 PT

Jefferies Initiates Coverage on Tuya with Buy Rating and $3.49 PT

Jefferies Financial Group has initiated coverage on Tuya Inc. (NYSE:TUYA) with a "buy" rating and a price target of $3.49. The investment research firm's positive outlook on Tuya comes after a strong Q2 2025 earnings report, which showcased robust revenue growth and strategic advancements in smart home technology [1].

Tuya reported an adjusted earnings per share (EPS) of 18 cents for the quarter ending June 30, 2025, up from 15 cents in Q2 2024. The company's revenue for the quarter reached $1.25 billion, representing a 25% year-over-year increase. The strong financial performance was supported by substantial customer growth, with total paying customers rising by 30% to 1.2 million [1].

Jefferies' revised price target of $3.49 reflects the firm's optimism about Tuya's growth trajectory and its ability to continue delivering strong financial results. The investment research firm expects Tuya's adjusted EPS to reach 35-36 cents for the full year 2025, with revenue forecasted between $5.1 billion and $5.15 billion [1].

Tuya's stock has shown significant price volatility, trading between a 52-week low of $25.10 and a high of $80.75. Despite the price fluctuations, the company's strong financial performance and strategic focus on smart home technology have garnered positive attention from analysts and investors alike. The stock's consensus rating of "Moderate Buy" and a consensus price target of $45.12 indicate a generally bullish sentiment towards the company [2].

In addition to Jefferies' positive outlook, other analysts have also raised their price targets and maintained a "buy" rating on Tuya. Mizuho, for instance, has increased its price target to $3.80 and issued an "outperform" rating. Meanwhile, several other firms, including Piper Sandler and Cowen, have also expressed optimism about Tuya's prospects [2].

While the stock has seen significant insider activity, with notable sales by the CFO and CEO, the overall sentiment remains positive. Institutional investors own a substantial 75.23% of Tuya's stock, further indicating confidence in the company's long-term prospects [2].

References:
[1] https://theoutpost.ai/news-story/tuya-s-q2-earnings-surge-smart-home-initiatives-and-strong-growth-boost-performance-18530/
[2] https://www.marketbeat.com/instant-alerts/tuya-nysetuya-stock-price-expected-to-rise-robert-w-baird-analyst-says-2025-07-25/