UPDATE: JPMorgan Downgrades iQIYI (IQ) to Underweight

February 18, 2021 8:26 AM EST
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Price: $15.22 +0.33%

Rating Summary:
    7 Buy, 9 Hold, 5 Sell

Rating Trend: = Flat

Today's Overall Ratings:
    Up: 17 | Down: 13 | New: 41
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(Updated - February 18, 2021 8:28 AM EST)

JPMorgan analyst Binbin Ding downgraded iQIYI (NASDAQ: IQ) from Neutral to Underweight with a price target of $18.00.

The analyst comments "We believe IQ’s share price rebound YTD (42% vs. 14% of HSI) was mainly driven by 1) strong sentiment in overall stock market, and 2) investors taking profit on short positions post 3Q20 results; and to a lesser extent by 3) the expectation of paying subs recovery into 2021. The current market consensus has already baked in 10-15m net adds in paying subs for fullyear 2021. To move the share price higher, we believe it requires either 1) IQ to deliver at least 3-4m quarterly net adds consistently in the next few quarters, or 2) realization of IQ’s asset value through a potential M&A. We think the likelihood of both is low given the current market circumstances (a mature market with tightened content regulation, competitive pressure, anti-trust regulations, etc). Downgrade to Underweight."

For an analyst ratings summary and ratings history on iQIYI click here. For more ratings news on iQIYI click here.

Shares of iQIYI closed at $22.85 yesterday.

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