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Research Alert: CFRA Maintains Hold Opinion On Shares Of Adss Of Iqiyi Inc.

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CFRA, an independent research provider, has providedwith the following research alert. Analysts at CFRA have summarized their opinion as follows:

We cut our target price to USD1.20 from USD1.30 based on 13.9x Forward P/E. This is in turn based on a five-year average valuation for the stock. We believe that an average valuation is justified as iQIYI is in a transitional phase with both opportunities and challenges. iQIYI reported Q1 2026 revenues of CNY 6.23B, down 13% YoY, with declines across all segments: membership services (-5%), online advertising (-7%), content distribution (-43%), and others (-49%). The company swung to an operating loss of CNY 228.4M from CNY 341.9M profit YoY, and net loss of CNY 294.6M versus CNY 182.1M profit. We cut 2026 EPS to CNY0.59 from CNY0.65 and 2027 EPS to CNY0.89 from CNY0.99. The stock remains a Hold due to near-term headwinds including revenue declines and profitability pressures, balanced by management's AI cost initiatives, overseas growth momentum, and market leadership position. The Hong Kong listing and share buyback program signal confidence.

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