01:10 AM EDT, 05/28/2025 (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:

We lower our target price to USD1.70 (from USD2.50), implying a 2025 P/E of 11.2x (vs. its three-year mean of 13.4x and over 40x for its direct competitor, Netflix). The valuation discount reflects our projected margin weakness and modest revenue growth amid looming macroeconomic headwinds. We project a modest revenue recovery on the rollout of new premium drama content and a recovery in content slates, but tightening regulation on short drama and cautious advertising spending in China will likely limit the growth prospects, in our view. Net margin is projected to stay soft at about 3.5%-4.5% for 2025 and 2026 (below 2023's level of 6%), due to increased investment in short drama and elevated marketing spending, though higher average revenue per membership and AI-driven efficiency may help to mitigate some cost pressures. Following the weak Q1 results, we cut our EPADS forecast to CNY1.07 (from CNY2.00) for 2025, and initiate 2026 EPADS estimate at CNY1.38.