On Thursday, Jefferies, a global investment banking firm, updated its outlook on iQIYI shares, raising the price target to $6.10 from the previous $5.30. The firm continues to recommend a Buy rating for the NASDAQ-listed streaming company's stock.
The adjustment came after iQIYI reported its first-quarter earnings, which showcased revenue figures that met expectations and non-GAAP earnings that surpassed what was anticipated. The company's management emphasized their commitment to several strategic areas including the production of high-quality and diverse content, the use of Artificial Intelligence in content generation (AIGC), efforts to combat piracy, and strengthening operational capabilities.
In terms of revenue breakdown, Jefferies noted that iQIYI's online advertising segment is reaping benefits from the rapid growth of performance-based advertising. Meanwhile, the membership revenue stream hinges on the average revenue per member (ARM) and the number of subscribers.
Jefferies anticipates that iQIYI will continue to exhibit solid cost control while focusing on return on investment (ROI). This financial discipline, coupled with the company's strategic initiatives, underpins the firm's decision to maintain a Buy rating on iQIYI shares.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.