iQIYI's growth outlook uncertain due to China scrutiny - Benchmark

PetIQ

28/12/2021 12:45

** U.S.-listed shares of China-based video streaming
platform  IQ.O  rise 1% premarket to $4.64
    ** Benchmark initiates coverage of the stock with a "hold"
rating 
    ** Calls the firm a leading asset in the China long-form
video space, but says it is cautious on its growth outlook due
to stringent content scrutiny from government, unpredictable
approval process, fierce competition 
    ** Adds that regulators are continuing to add parameters
that limit content development; "We don't expect the regulatory
environment... to change in the next 9- to 12-month horizon and
therefore expect continued muted revenue growth"
    ** Last month, IQ shares dropped after co posted a weak Q4
forecast citing uncertainty in content scheduling  urn:newsml:reuters.com:*:nL4N2S82JI
    ** Brokerage expects the stock to continue to trade at a
deep discount to peers
    ** YTD, IQ shares down 74% versus search engine giant
Baidu's  BIDU.O  34% decline this year

 (Reporting by Anisha Sircar in Bengaluru)
 ((Anisha.Sircar@thomsonreuters.com;))