Benchmark Co. analyst Fawne Jiang has maintained their neutral stance on IQ stock, giving a Hold rating yesterday.
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Fawne Jiang has given his Hold rating due to a combination of factors impacting Iqiyi’s current and future performance. The company’s second-quarter results showed a decline in revenue by 11% year-over-year, primarily due to weak performance in membership, advertising, and content distribution. Although there are signs of recovery in the third quarter with improved audience engagement driven by a stronger content lineup, the company still faces near-term challenges from increasing competition and cautious management guidance.
New policies from the National Radio and Television Administration (NRTA) are expected to support the content industry by shortening production cycles and enhancing creative freedom, which could benefit Iqiyi. However, the company needs to demonstrate effective execution to fully capitalize on these opportunities. Consequently, the FY25 projections have been revised downward, and a Hold rating is maintained while awaiting clearer signs of improved execution and growth.
In another report released yesterday, US Tiger Securities also maintained a Hold rating on the stock with a $2.50 price target.