Analyst Saiyi He from CMB International Securities maintained a Buy rating on Iqiyi and decreased the price target to $1.80 from $2.00.
Meet Samuel – Your Personal Investing Prophet
- Start a conversation with TipRanks’ trusted, data-backed investment intelligence
- Ask Samuel about stocks, your portfolio, or the market and get instant, personalized insights in seconds
Saiyi He has given his Buy rating due to a combination of factors that balance short-term earnings pressure with a resilient core business and emerging growth drivers. While he anticipates a notable year-on-year revenue decline and a swing to non-GAAP loss in 1Q26, he underscores that the membership segment should hold up relatively well, supported by solid viewership for several hit drama titles.
He also points to improving cash generation, expecting positive operating cash flow as content investment is better paced and review cycles become more efficient. In addition, he highlights encouraging early progress in iQIYI’s AI initiatives, particularly the NaDou Pro agent platform and AI Theatre, which can expand content supply and create new revenue-sharing opportunities. Reflecting softer non-core segments, he trims revenue forecasts and target price but still sees attractive value at the current multiple, justifying a maintained Buy rating.