0710 GMT - iQiyi is forecast to post 2% on-year revenue growth in 4Q, supported by membership and content distribution growth despite likely weaker advertising, HSBC analysts say in a note. Overseas revenue and profit contribution remain small, but the Chinese video-streaming companyexpects the segment to become more meaningful if current growth momentum can be sustained. The company expects AI to improve content creation, operation efficiency and ad-conversion rates. The analysts project revenue growth for 2026 and 2027 to reach 4% and 6%, respectively. However, HSBC lowers its 2026-2027 gross profit margin projections by 0.3 percentage point, citing likely higher overall content expenses. The bank lowers its target price on iQiyi to $2.00 from $2.30 and maintains a hold rating. The ADRs last closed at $2.18. (jason.chau@wsj.com)
(END) Dow Jones Newswires
November 19, 2025 02:10 ET (07:10 GMT)
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