Jefferies Initiates Coverage on Tuya (TUYA) with Buy Rating for IoT Market Dominance

Tuya Inc. (NYSE:TUYA) is one of the best NYSE penny stocks to invest in now. On August 5, Jefferies initiated coverage on Tuya’s shares with a “Buy” rating and set a price target of $3.49 per share.

The analyst identified Tuya as the “world’s largest third-party software and hardware IoT platform,” connecting over 800 million smart devices across more than 200 countries. This is the main reason the firm initiated the coverage. They also highlighted Tuya’s extensive client base of over 5,000 companies, including major brands like Philips (electronics), Haier (appliances), and Schneider Electric (energy management).

Jefferies noted Tuya’s ability to work with various devices and brands without favoring any one, as well as its comprehensive set of software and tools, and compliance credentials, as key advantages in the IoT market. The firm also pointed to generative artificial intelligence as a driver for new IoT products and higher average selling prices for Tuya’s offerings, boosting future revenue potential.

Tuya Inc. (NYSE:TUYA) is a Chinese Artificial Intelligence of Things (AIoT) cloud platform provider. It enables businesses and developers to build smart devices and applications across various industries, including home automation, energy management, hospitality, and agriculture. Tuya offers platform-as-a-service (PaaS), software-as-a-service (SaaS), and value-added cloud services, including AI audio/video, cloud storage, and push messaging.

While we acknowledge the potential of TUYA as an investment, we believe certain AI stocks offer greater upside potential and carry less downside risk. If you're looking for an extremely undervalued AI stock that also stands to benefit significantly from Trump-era tariffs and the onshoring trend, see our free report on the best short-term AI stock.

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