Analyst Saiyi He of CMB International Securities maintained a Buy rating on Iqiyi, reducing the price target to $2.00.
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Saiyi He has given his Buy rating due to a combination of factors including iQIYI’s return to revenue growth and improving profitability in the latest quarter, where overall sales modestly exceeded the prior year and losses turned into a positive non-GAAP profit, reflecting better operating leverage. Although the near-term outlook, especially for 1Q26, points to softer revenues as the firm reshapes its content mix and reduces third-party distribution, the analyst still sees the current share price as undervaluing the company’s earnings potential and operational progress.
Additionally, emerging business lines such as overseas subscriptions, IP-based offline experiences, and micro-drama content are showing encouraging traction, which could diversify and expand future revenue streams. While margins may face short-term pressure due to lower advertising and content distribution income, the analyst believes iQIYI’s improving content performance, leadership in viewership rankings, and ongoing AI-driven efficiency initiatives support a constructive long-term view, justifying a Buy rating despite a reduced target price.