CMB International Securities analyst Saiyi He has maintained their bullish stance on IQ stock, giving a Buy rating yesterday.
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Saiyi He has given his Buy rating due to a combination of factors that suggest a positive outlook for iQiyi. Despite a decline in total revenue for 2Q25, the company’s non-GAAP operating income exceeded expectations, indicating effective cost management. Looking ahead, there is an anticipated recovery in core membership and online advertising revenues, driven by strong content offerings during the summer season.
Additionally, recent policy changes by the NRTA to support the TV content supply are expected to enhance iQiyi’s business prospects by improving content production efficiency and expanding distribution channels. Furthermore, iQiyi’s strategic investments in new areas such as micro dramas and IP derivatives, alongside the development of immersive experiences like iQiyi Land, demonstrate the company’s commitment to innovation and growth. These factors collectively contribute to the optimistic valuation and an increased target price for the stock.
In another report released yesterday, UBS also upgraded the stock to a Buy with a $3.32 price target.
IQ’s price has also changed slightly for the past six months – from $2.255 to $2.350, which is a 4.21% increase.