09:40 AM EDT, 03/24/2026 (MT Newswires) -- CFRA, an independent research provider, has provided MT Newswires with the following research alert. Analysts at CFRA have summarized their opinion as follows:

We cut our 12-month target price to USD1.30 (from USD1.90), reflecting a forward P/E multiple of 13.7x and in line with its five-year average. We believe that an average valuation is justified as iQIYI is in a transitional phase with both opportunities and challenges. While Q4 2025 showed improvement with modest revenue growth of 2.7% Y/Y and a swing to near breakeven (a CNY5.8M loss vs a CNY189.4M loss in the prior year), full-year results reflect ongoing margin pressure with operating margins at 1% versus 6% in 2024. We believe that the recent surge in oil prices is a headwind for iQIYI. We think that sustained high crude oil prices will lead to reduced Chinese consumer discretionary spending on entertainment subscriptions as inflation rises. We also think that advertisers may cut budgets amid margin pressure, which would hurt iQIYI's already declining ad revenue. We cut our 2026 EPS estimate to CNY0.65 from CNY0.74 and our 2027 EPS estimate to CNY0.99 from CNY1.01.