- Chinese tech company iQIYI ( NASDAQ: IQ ) was upgraded by Bank of America on Thursday after the investment firm said the online entertainment company's "strong" in-house content "justifies [a] leading position."
- Analyst Lei Zhang raised the firm's rating on iQIYI ( IQ ) to buy from neutral and boosted the per-share price target to $9, citing not only an improvement in the industry itself, but upside to earnings estimates for 2023 and 2024 and the company's recently announced $600M convertible senior notes offering.
- "IQ’s strategy to focus on in-house content with higher quality control and lower production costs continues to benefit its subscription growth and [return on investment]," Zhang wrote in an investor note.
- Zhang added that strong subscriber momentum should continue thanks to its Punch Out game, along with a more friendly regulatory environment and continued content releases.
- iQIYI ( IQ ) shares fell fractionally in premarket trading on Thursday.
- Last month, iQIYI ( IQ ) reported fourth-quarter results that topped analyst expectations .
For further details see:
iQIYI upgraded by BofA on 'strong in-house content'