Analyst Saiyi He of CMB International Securities maintained a Buy rating on Iqiyi, reducing the price target to $2.65.
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Saiyi He has given his Buy rating due to a combination of factors including expectations of revenue and margin recovery in the upcoming quarters. Despite a decline in total revenue for 3Q25, the results were in line with estimates, and there is optimism for a rebound driven by the recovery of the membership business, supported by a stronger content lineup and favorable policy conditions.
Additionally, iQiyi has shown positive developments in its overseas markets and innovative segments like micro dramas, which are beginning to yield results. The company’s strategic investments in content and technology, such as AI enhancements, are expected to improve production efficiency and user experience, contributing to future growth. These factors, along with the anticipated recovery in operating margins, underpin the Buy rating.