CLSA analyst Elinor Leung upgraded iQIYI to Outperform from Underperform with a price target of $27, up from $23.50. The online entertainment service in China is trading down 9%, or $2.11, to $22.31 in afternoon trading. The coronavirus outbreak is boosting the company’s traffic and paying users, Leung tells investors in a research note. The analyst views the company as “resilient” from the coronavirus outbreak and believes it has a strong content pipeline. iQIYI is introducing new fee models and plans to cut monthly subscription discounts to boost 2020 membership average revenue per user, Leung says.
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