CMB International Securities analyst Saiyi He maintained a Buy rating on Iqiyi today and set a price target of $2.25.
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Saiyi He has given his Buy rating due to a combination of factors that highlight iQiyi’s strategic positioning and potential for future growth. Despite a projected decline in total revenue for the second quarter of 2025, largely attributed to delays in TV drama releases and weaker advertising performance, iQiyi’s earnings outlook remains stable. The company has effectively managed its content costs and operational expenses, which supports its profitability even amidst revenue pressures.
Moreover, iQiyi’s investment in mini dramas has shown promising early results, indicating a potential new revenue stream as these productions gain popularity. The anticipated launch of high-quality dramas in the upcoming quarter is expected to aid in revenue recovery, particularly in the membership segment. While the advertising sector faces challenges, brand advertising has shown resilience, supported by popular variety shows. These strategic initiatives and cost management efforts underpin Saiyi He’s confidence in maintaining a Buy rating for iQiyi.
In another report released on July 18, Citi also maintained a Buy rating on the stock with a $2.30 price target.