JPMorgan analysts double-downgraded Bilibili Inc. (NASDAQ:) to Underweight from Overweight, with a price target of $13 per share.

The analysts told investors in a note Thursday that while they remain positive about BILI’s strong user engagement among China Gen-Z users, they have become incrementally cautious about the company’s monetization outlook.

“Our 2023/24 revenue estimates are now 8%/11% below consensus,” they wrote. “We believe competition in China’s mobile game market has intensified since 2Q23, and thus the hit-and-miss risk for new mobile games (especially Pretty Derby) has increased.”

“We have become more cautious on the live streaming revenue (booked in VAS) outlook in 2023 due to higher regulatory risk (JPMe 2023 VAS revenue is 8% below consensus),” they added.

BILI shares are down over 5% Thursday at the time of writing.