10:50 AM EDT, 08/28/2025 (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:

Our revised target of USD2 (from USD1.70), implies a semi-annual blended P/E of 15.3x (vs. over 45x for its direct competitor Netflix and 30x for Bilibili), reflecting deteriorating margin prospects, macroeconomic uncertainties, and regulatory headwinds. We project revenue to decline 2% in 2025 before a modest 1% recovery in 2026, constrained by weaker content slates, tighter regulation on short dramas, and subdued ad spending in China amid macroeconomic uncertainty. Cost-cutting initiatives will 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. Net margin is projected to contract further to 1.3% in 2025 from 2.6% in 2024, due to monetization challenges and elevated cost pressures, in our view. We cut our EPADS forecast to CNY0.38 from CNY1.07 for 2025 and to CNY1.06 from CNY1.38 for 2026, following disappointing Q2 results.