KE Holdings Inc. Buy Rating: Strong Q1 Performance and Strategic Optimizations Amid Cautious Outlook

Saiyi He, an analyst from CMB International Securities, maintained the Buy rating on KE Holdings Inc. Sponsored ADR Class A (BEKE – Research Report). The associated price target was lowered to $24.60.

Saiyi He has given his Buy rating due to a combination of factors that highlight both the strengths and challenges faced by KE Holdings Inc. The company’s first-quarter results for 2025 surpassed expectations, with a notable 42% year-over-year revenue increase driven by strong performance in new home and emerging business segments. This growth was complemented by a non-GAAP net profit that exceeded estimates, indicating robust operational efficiency.
However, Saiyi He acknowledges the cautious outlook provided by the company for the remainder of the year, which suggests a more conservative approach due to uncertainties in policy support and market conditions. Despite this, the analyst maintains a positive long-term view, supported by the company’s strategic cost optimizations and breakthroughs in its home renovation business, which achieved a record-high contribution margin. These factors collectively underpin the Buy rating, reflecting confidence in the company’s ability to navigate short-term challenges while capitalizing on long-term growth opportunities.

In another report released on May 16, Barclays also maintained a Buy rating on the stock with a $33.00 price target.