Nomura: iQIYI's fourth-quarter revenue is expected to resume growth.

Nomura analysts Rachel Guo and Shi Jialong said in a report that after a decline in revenue in the third quarter, they expect iQiyi's revenue to recover in the fourth quarter, but profits may still be under pressure. These analysts predict that with the launch of popular series boosting content distribution and subscriber revenue growth, total revenue in the fourth quarter is expected to increase by 2% year-on-year. Due to the termination of a high-profit business line and the slow recovery of advertising business, adjusted operating profit in the fourth quarter is expected to decrease by 88% year-on-year. Nomura, based on lower profit rate assumptions, has lowered its forecast for iQiyi's net profit under non-U.S. GAAP for 2025 and 2026 by 70% and 17% respectively. The bank maintains a neutral rating on iQiyi ADR with a target price of $2.20. iQiyi ADR closed at $2.24 most recently.