How might the buyback influence analyst coverage, target price revisions, and overall sentiment toward the stock?

The extended share‑repurchase programme is a clear signal that Autohome’s board believes the stock is undervalued and that excess cash can be returned to shareholders without jeopardising growth. In practice, buy‑backs tend to tighten the float, lift the price‑to‑earnings multiple and generate a “price‑support” effect that analysts quickly note. We can therefore expect a modest uptick in analyst coverage – a few more “buy” or “overweight” calls – as research teams adjust their earnings forecasts to reflect the lower share count and the implied confidence in cash‑flow generation.

Because the repurchase reduces dilution and improves per‑share fundamentals, most sell‑side houses will likely lift their target prices by 5‑8 % (roughly 0.5–0.8 CNY on the current $2.5 CNY level) to bring the valuation back into line with the new earnings per share (EPS) outlook. The upgrade in targets will feed a more bullish sentiment narrative, nudging the stock’s overall sentiment rating from “neutral‑positive” toward “positive‑strong.”

From a technical standpoint, the market has already priced in some of the upside, with the stock hovering near its 50‑day moving average and holding a modestly bullish chart pattern (higher highs, higher lows). The buy‑back should provide fresh buying pressure, especially on days of low volume, and could act as a catalyst for a short‑term rally toward the next resistance zone around 2.8 CNY. Traders can consider a long‑position with a tight stop just below the 50‑day average (≈2.45 CNY) and a target aligned with the revised analyst consensus (≈2.8–2.9 CNY). If the price stalls below the 50‑day line, it may signal that the market is discounting the buy‑back’s impact and a partial profit‑taking or defensive stop could be warranted.