Lizhi Inc. has inked a strategic partnership deal with Tiger Brokers to create a branded podcast channel. Likewise, they hope to take advantage of the growing acceptance of podcasts as a medium of marketing.
Established in 2014, Tiger Brokers hopes to reach new audiences with branded podcasts through Lizhi’s (LIZI) vertical podcast platform, LIZHI Podcast. The online brokerage firm hopes to leverage Lizhi’s extensive user base to grow its brand awareness and influence through podcasts.
“Branded podcasts are regarded as an important medium for marketing and promoting corporate values for enterprises in various regions of the world. With the development of the domestic podcasting industry in China, we believe more and more companies have realized the charm of podcasting,” stated Jinnan Lai, Lizhi’s CEO.
The Tiger Brokers branded podcast collaboration follows a similar partnership with POP MART, a leading entertainment company in China. Lizhi is eyeing additional collaborations with enterprises and brands to expand its presence in the podcast industry.
Lizhi shares are up by more than 90% year to date after a 64% slide in 2020. (See Lizhi stock analysis on TipRanks).
Lizhi has also closed a $30 million direct offering. The company intends to use net proceeds from the offering to accelerate the growth of its online audio business overseas and in mainland China.
In March, Needham’s analyst Vincent Yu reiterated a Buy rating on Lizhi, after the company beat revenue and margin estimates in the fourth quarter. The analyst also raised the stock’s price target to $9 from $5, implying 24% upside potential to current levels.
“Online audio entertainment contributed the most growth, owing to a successful year-end promotional gala and increased marketing spending. We believe the Tiya app and the Lizhi podcast, which have both shown successes after launch, will support Lizhi’s future growth,” stated Mr. Yu.
Lizhi commands a Moderate Buy consensus rating on Wall Street based on one Buy and an average analyst price target of $9, implying 24.14% upside potential to current levels.
The stock scores 7 out of 10 on the TipRanks’ Smart Score rating system, suggesting its performance will likely meet market averages.
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