KE Holdings Inc. Sponsored ADR Class A, the Real Estate sector company, was revisited by a Wall Street analyst today. Analyst Saiyi He from CMB International Securities maintained a Buy rating on the stock and has a $20.70 price target.
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Saiyi He has given his Buy rating due to a combination of factors that highlight KE Holdings Inc.’s potential for future growth and profitability. Despite facing industry challenges, the company has managed to increase its market share and improve operational efficiency in its core housing transaction business. This is complemented by significant strides in its new business segments, such as home renovation and furnishing, and home rental services, which have shown promising revenue growth and improved contribution margins.
Moreover, the company’s efforts to enhance shareholder returns through increased share repurchases indicate a strong commitment to delivering value to investors. While short-term profitability is affected by industry headwinds, the long-term outlook remains positive, with expectations of a substantial rebound in non-GAAP net profit by 2026. Saiyi He maintains confidence in KE Holdings’ leading market position and its strategic initiatives to drive future revenue and earnings growth, supporting the Buy recommendation.
In another report released yesterday, Barclays also maintained a Buy rating on the stock with a $25.00 price target.