Autohome Inc. (ATHM) PT Lowered to $25 at BofA Securities

BofA Securities analyst Miranda Zhuang lowered the price target on Autohome Inc. (NYSE: ATHM) to $25.00 (from $29.00) while maintaining a Neutral rating.

The analyst comments "For 2026, we expect 1) downside risk to core business revenue due to deterioration in auto market. BofA Global Research Auto team expects China passenger vehicle sales volume to turn negative growth in 2026, among which the ICEV segment will enlarge its decline to a -16% YoY; 2) downside risk to Autohome’s margin as Co. is investing to open stores and transform to a car transaction business model. As such, we cut 2026- 27e adjusted NP by 8%. We cut DCF-based PO to US$25 (HKD49) from US$29 (HKD57) due to lower profit estimates and hence lower cash and FCF growth outlook, and roll forward of forecast years. Our PO is based on 1) discount rate of 18%, 2) terminal growth rate of 1%, 3) 2024-29E FCF CAGR of -12%, 4) net cash per share of US$24, and 5) RMBUSD rate of 7. We reiterate our Neutral rating as business trend is weak but stock price has support from high cash level of USD24 per share and dividend."

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