AutoHome’s Resilient Expansion Amidst Revenue Challenges and Strategic Developments

Bank of America Securities analyst Miranda Zhuang has reiterated their neutral stance on ATHM stock, giving a Hold rating on April 29.

Miranda Zhuang’s rating is based on several factors influencing AutoHome’s current financial and market position. The company experienced a notable decline in its topline and profit in the first quarter of 2025, with total revenue falling by 10% year-over-year. The media service revenue saw a significant drop, and the growth in marketplace revenue slowed down. However, the non-GAAP net profit exceeded expectations due to lower operating expenses.
Despite these challenges, AutoHome’s new retail business is expanding rapidly, with a growing number of Space and Satellite Stores contributing to revenue. The company plans to continue expanding its store network significantly, which could drive future revenue growth. Additionally, while the ongoing trade war poses potential cost pressures, AutoHome maintains a strong cash balance and an attractive shareholder return policy. The pending Haier group’s share purchase deal could also provide clearer insights into the company’s future strategies and financial outlook, supporting the Hold rating.