Citi lowered its price target for Autohome (NYSE: ATHM) to $17 per share, citing ongoing revenue growth challenges amid weak new vehicle sales and lower earnings estimates.

Key Highlights

  • Citi lowered the target price for Autohome (NYSE: ATHM) to $17, down from $18, and kept its Neutral stance.
  • Autohome’s payout rate is about 10.28 % per annum, appealing to investors focused on income.
  • Mobile daily active users rose to over 80 million in March 2026, a 4.9 % increase from the prior year.
  • Continued softness in new‑vehicle sales is weighing on advertising spend from original equipment manufacturers.
  • Executive Chi Liu discussed overseas expansion, noting activities in Thailand and a platform for exporting used cars.

Citi Adjusts Forecast

On May 29, Citi revised its valuation of Autohome (NYSE: ATHM), setting a new target of $17 per share, a reduction from $18, while maintaining a Neutral recommendation. The change reflects the company’s recent quarterly results, which highlighted persistent challenges in growing revenue. Analysts pointed to slower profit growth and ongoing headwinds affecting the automotive advertising segment.

Automotive Advertising Weakness

Weakness in new‑vehicle sales is expected to keep pressure on advertising budgets, though Citi observed that the year‑over‑year decline in OEM advertising spend may start to ease. Autohome’s core earnings remain sensitive to broader industry dynamics, particularly as manufacturers and dealers trim marketing expenditures. The firm also adjusted its forward earnings projections downward.

User Engagement Strengthens

Despite the revenue environment, Autohome reported that its mobile daily active users exceeded 80 million in March 2026, marking a 4.9 % rise compared with the previous year. This growth underscores strong consumer interest in the platform. Management highlighted ongoing initiatives to boost engagement, including new tools designed to turn browsing activity into transaction opportunities.

Digital Retail Pilot

The company is experimenting with a digital car‑buying service in select markets, collaborating with local dealerships to trial online retail models. Chi Liu framed this as part of a broader effort to diversify income streams beyond traditional advertising. If consumer adoption accelerates, the platform could become a significant source of revenue.

International Growth Strategy

Autohome continues to broaden its overseas presence, with the YesAuto brand launching operations in Thailand and a dedicated platform for exporting pre‑owned vehicles gaining traction. These moves are intended to create a “dual‑circulation” approach, leveraging both domestic and international demand to mitigate domestic market pressure.

Dividend Appeal

The firm’s annual dividend yield of roughly 10.28 % positions it as an attractive option for income‑oriented investors. While the high payout signals a commitment to returning capital, its durability will hinge on

 

This article is for informational purposes only and does not constitute financial advice. Please consult a licensed financial adviser before making investment decisions.