Benchmark Co. analyst Fawne Jiang has maintained their neutral stance on IQ stock, giving a Hold rating yesterday.
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Fawne Jiang has given his Hold rating due to a combination of factors that highlight both challenges and potential for Iqiyi. The company faced a difficult fiscal year with declining revenue and memberships, particularly noted in the fourth quarter results. However, there are signs of recovery with improvements in content releases and initial progress in their mini-drama initiatives.
Despite these positive developments, Jiang remains cautious due to conservative guidance for the first quarter and limited visibility for the fiscal year 2025. The sustainability of Iqiyi’s growth strategy and its competitive positioning are areas of concern, making it a ‘show-me’ story. The market will closely watch how the company navigates these challenges and seizes opportunities in content production and membership monetization.
In another report released yesterday, US Tiger Securities also reiterated a Hold rating on the stock with a $2.50 price target.