Tuya, Inc. Class A Receives Buy Rating from Jefferies

Jefferies analyst Matt Ma maintains a Buy rating on Tuya, Inc. Class A with a HK$28.00 price target, after the company's shares closed at HK$22.18. The analyst consensus rating is Moderate Buy with a HK$28.00 average price target. Tuya, Inc. Class A has a one-year high of HK$69.50 and a one-year low of HK$10.38, with an average volume of 97.63K.

Tuya Inc. (TUYA), a leading provider of AIoT (Artificial Intelligence of Things) solutions, reported strong Q2 2025 financial results, further cementing its position as a standout performer in the AIoT sector. The company's shares closed at HK$22.18, with analysts maintaining a moderate buy rating and a HK$28.00 price target [2].

Key Highlights from Q2 2025

- Revenue Growth: Tuya's revenue rose by 9.3% to HK$80.13 million, slightly exceeding analyst expectations of HK$78.44 million [2].
- Earnings per Share (EPS): The company reported adjusted earnings of 3 cents per share, meeting analyst expectations [2].
- Stock Performance: Tuya shares have gained 43.0% year-to-date and 10.8% this quarter, reflecting investor confidence in the company's growth prospects [2].

Analyst Perspectives

Jefferies analyst Matt Ma maintains a Buy rating on Tuya Inc. Class A with a HK$28.00 price target, citing the company's strong operational leverage and impressive financial health metrics [3]. The analyst consensus rating is a moderate buy, with an average price target of HK$28.00 [2].

Operational Strength and Growth Potential

Tuya's Q2 2025 results underscore its ability to navigate headwinds and maintain robust growth. The company's gross margins and operational leverage remain strong, with a current ratio of 7.25 and virtually no debt [3]. Tuya's AIoT platform has enabled 93% of its device categories to incorporate AI functions, supporting large-scale developer-led AI agent creation [3].

Valuation and Future Prospects

Despite a 64x P/E ratio, Tuya's valuation appears attractive given its 57.2% YoY profit growth and a 5.1x P/S ratio, which is modest for a high-growth SaaS company [1]. The company's non-GAAP operating margin of 9.1% and $1.02 billion in cash reserves provide a buffer against macroeconomic risks [1].

Conclusion

Tuya Inc. continues to demonstrate strong operational performance and growth potential, making it an attractive investment opportunity for long-term investors. With a well-positioned AIoT platform and a resilient business model, Tuya is well-equipped to capitalize on the growing AIoT market.

References:
[1] https://www.ainvest.com/news/tuya-ai-driven-turnaround-strategic-buy-opportunity-aiot-sector-2508/
[2] https://www.tradingview.com/news/reuters.com,2025:newsml_L8N3UI1FI:0-tuya-inc-reports-results-for-the-quarter-ended-june-30-earnings-summary/
[3] https://www.investing.com/news/analyst-ratings/jefferies-raises-tuya-stock-price-target-to-360-on-aiot-growth-potential-93CH-4213125