AutoHome’s Strategic Transition Amid Revenue Challenges: A Hold Rating

Tip Ranks
2025.11.07 11:38
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Bank of America Securities analyst Miranda Zhuang has maintained a Hold rating on AutoHome (ATHM) stock, citing mixed revenue performance. While third-quarter revenue met expectations with improved marketplace growth, declines in leads generation and gross profit margins raised concerns. AutoHome is transitioning to an AI-driven service platform and has approved a cash dividend and share buyback, indicating a focus on shareholder returns. However, challenges in the core business and expected revenue declines lead to a cautious outlook. Another report also reiterated a Hold rating with a $27.00 price target.

Bank of America Securities analyst Miranda Zhuang has reiterated their neutral stance on ATHM stock, giving a Hold rating yesterday.

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Miranda Zhuang’s rating is based on a combination of factors that reflect both the strengths and challenges facing AutoHome. The company’s third-quarter revenue was largely in line with expectations, with a notable improvement in marketplace revenue growth and a narrowing decline in media service revenue. However, the decline in leads generation service revenue expanded, and the gross profit margin decreased due to increased investment in new business ventures.
Despite these challenges, AutoHome is making strategic moves to transition into an AI-driven online-to-offline transaction service platform, which could provide long-term growth opportunities. The company has also approved a cash dividend and is executing a share buyback program, indicating a commitment to shareholder returns. Nonetheless, concerns about the core business and expected declines in advertising and leads revenues have led to a cautious outlook, resulting in a Hold rating as the company navigates these transitional phases.

In another report released yesterday, TR | OpenAI – 4o also reiterated a Hold rating on the stock with a $27.00 price target.

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