05:30 AM EST, 11/21/2025 (MT Newswires) -- CFRA, an independent research provider, has provided MT Newswires with the following research alert. Analysts at CFRA have summarized their opinion as follows:

We trim our target price to USD1.90 (from USD2.00), implying a 2026 P/E of 18.4x (vs. over 40x for its direct competitor Netflix and 31x for Bilibili), reflecting muted growth outlook, macroeconomic uncertainties, and regulatory headwinds. We cut our EPADS forecast to CNY0.15 (from CNY0.38) for 2025 and to CNY0.74 (from CNY1.06) for 2026, following disappointing Q3 results. Revenue is projected to -2% in 2025 before a modest +1% recovery in 2026, constrained by weak content slates, tighter regulation on short dramas, and subdued ad spending in China. Cost-cutting initiatives will also constrain the release of premium content, weakening user engagement and advertising appeal, while intense competition with dominant players in China like Tencent Video and Kuaishou will hinder market share gains in the short drama market, in our view. Nevertheless, we expect a modest margin recovery into 2026, amid a gradual recovery in content slates and AI initiatives, although the operating environment remains challenging.