Analyst Saiyi He from CMB International Securities maintained a Buy rating on Iqiyi and keeping the price target at $2.70.
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Saiyi He has given his Buy rating due to a combination of factors that highlight iQiyi’s strategic focus and potential for future growth. The company is expected to maintain a stable revenue stream, with a resilient membership business projected to grow by 3% quarter-over-quarter, driven by a robust content lineup. Despite a forecasted year-over-year revenue decline, the strategic investment in quality content during the peak summer season is anticipated to enhance long-term value.
Moreover, iQiyi’s commitment to quality content production, as evidenced by their extensive slate of new releases, positions them well to capture market share. The company’s innovative use of AI in content creation, including the development of AI-generated content, further underscores their forward-thinking approach. While there are short-term pressures on advertising revenue, the supportive policy environment and strategic investments are expected to yield positive results by 2026, justifying the Buy rating.
According to TipRanks, He is a 5-star analyst with an average return of 19.5% and a 66.41% success rate. He covers the Communication Services sector, focusing on stocks such as Iqiyi, Baidu, and Bilibili.