Zhihu price target lowered to $5.40 from $8.40 at Citi

Citi lowered the firm’s price target on Zhihu to $5.40 from $8.40 and keeps a Buy rating on the shares following the Q1 beat. The analyst revised down 2024 revenue estimates by 6% to reflect Zhihu’s optimization in the low-efficiency business. The company is fully committed to reach breakeven in Q4 through optimizing low-efficiency projects and business, says Citi, which expects to see further revenue declines and spending decline.