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3 Reasons To Buy Iqiyi – The 'Netflix Of China' – According To Jefferies

By BenZinga
Financial Services

Streaming video provider Iqiyi Inc (NASDAQ: IQ), dubbed by some as being the “Netflix, Inc. (NASDAQ: NFLX) of China,” offers investors a potential upside of nearly 30 percent, according to Jefferies.

The Analyst

Jefferies’ Karen Chan initiated coverage of Iqiyi with a Buy rating and $33 price target.

The Thesis

The bullish case for Iqiyi is based on three factors, Chan said in the initiation note. (See her track record here.)

They are:

The online video space in China remains undermonetized, which is positive for a company that holds a leadership position with 565 million mobile monthly active users (67 million paying users) and the highest time spent share at 42 percent, the analyst …

Read the full story at Benzinga.

Photo: Getty iStock

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