Analyst Miranda Zhuang of Bank of America Securities reiterated a Hold rating on AutoHome (ATHM – Research Report), with a price target of $31.00.
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Miranda Zhuang’s rating is based on several factors reflecting both challenges and potential stabilizers for AutoHome’s financial performance. The anticipated weakening of dealer-related revenues and a decrease in digital product revenues due to liquidity pressures and industry consolidation are significant concerns. Additionally, the ongoing decline in advertising revenue, though expected to narrow, contributes to a cautious outlook.
Despite these challenges, the stock price is likely to be supported by the company’s strong cash position, which exceeds 90% of its stock price, and a potential shareholder return greater than 10% annually. The forecast for 2025 suggests ongoing industry headwinds, especially in the internal combustion engine vehicle segment, and intense competition among automakers. However, the expectation of stabilization in leads generation revenue and a steady profit margin provides some assurance amidst the uncertainties.