Jefferies Lifts Tuya Inc. (TUYA) Price Target amid AIoT Opportunity

Tuya Inc. (NYSE:TUYA) is one of the best Robinhood penny stocks to invest in. On August 27, Jefferies reiterated a Buy rating and increased the stock’s price target to $3.60 from $3.49. The price target hike comes on the heels of the stock’s strong momentum, given its 48.76% year-to-date gain.

Jefferies Lifts Tuya Inc. (TUYA) Price Target amid AIoT Opportunity

The impressive run also comes against the backdrop of solid financial results characterized by a 9% revenue growth in the second quarter. Net profit was also up by 302% attributed to stable gross margins and substantial operational leverage.

Jefferies expects the company to benefit from increasing Artificial Intelligence of Things (AIoT) adoption, given that 93% of its device categories incorporate AI functions. In addition, its SaaS business continues to grow at an impressive rate, helping to offset the slowdown at IoT PaaS and Smart Solutions.

Tuya Inc. (NYSE:TUYA) is a global AIoT (Artificial Intelligence of Things) platform provider that empowers brands, manufacturers, and developers to create and sell smart devices and solutions. It offers a cloud-based platform with SaaS (Software as a Service) and PaaS (Platform as a Service) offerings, providing access to hardware, cloud services, app development tools, and AI capabilities.

While we acknowledge the potential of TUYA to grow, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and have limited downside risk. If you are looking for an AI stock that is more promising than TUYA and that has 100x upside potential, check out our report about this cheapest AI stock.

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Disclosure: None. This article is originally published at Insider Monkey.