J.P. Morgan gives Phoenix New media an overweight target of 11 dollars

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Beijing time August 30 Evening News, JPMorgan released its investment report today, gave Phoenix New media shares (Nyse:feng) "Overweight" rating, the target price set to 11 U.S. dollars.

The following is a summary of the contents of the report:

We give Phoenix new media stocks "overweight" rating, the target price set to 11 U.S. dollars. Phoenix New Media is one of China's leading online information portals, traffic growth is strong, but the pace of commercialization still lags behind Sina and Sohu (advertising pricing). Despite the uncertainties in the outlook, we believe that the Phoenix new media will grow steadily over the next 12 months with unique content and fast-growing traffic.

Main service and Revenue source: Phoenix New media through its portal, mobile website and video platform to provide online media services, the main source of revenue for online advertising and billing services. Eric data shows that Phoenix New media month active user penetration rate of about 60% (the total number of portal users).

Steady traffic growth represents commercialization potential: Phoenix's new media is growing faster than other major portals, benefiting mainly from its unique content. We believe that the increase in the number of users will enhance the Phoenix new media to advertisers bargaining power. When advertising demand is weak, traffic can also be commercialized through value-added services.

Core growth Engine: We believe that the core driver of Phoenix's new media is its unique content. At the same time, Phoenix New media also through the locking of business users and highly educated users to achieve personalization. In addition, Phoenix New Media is also expanding the game business, which may promote the company's profit margin growth.

Valuation: We give Phoenix new media stocks "overweight" rating, the target price set to 11 U.S. dollars.