KE Holdings Inc. Sponsored ADR Class A, the Real Estate sector company, was revisited by a Wall Street analyst yesterday. Analyst Saiyi He from CMB International Securities maintained a Buy rating on the stock and has a $22.60 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 growth despite current industry challenges. The company’s revenue for the second quarter of 2025 showed an 11% year-over-year increase, driven by strong performance in new home transactions, home rental services, and home renovation and furnishing businesses. Although the non-GAAP net profit decreased by 32% year-over-year, it still surpassed estimates, indicating resilience in a challenging market.
Moreover, KE Holdings has demonstrated significant market share gains in both existing and new home transactions, with initiatives to improve operating efficiency leading to expanded contribution profit margins. The company’s new business segments, such as home renovation and furnishing and home rental services, have maintained solid revenue growth, contributing significantly to the overall revenue. Despite the short-term industry headwinds affecting profitability, Saiyi He remains optimistic about the company’s long-term growth prospects, supported by potential policy support and continued efficiency improvements, justifying the Buy rating.
In another report released on August 26, Jefferies also maintained a Buy rating on the stock with a $22.00 price target.
BEKE’s price has also changed moderately for the past six months – from $22.900 to $17.790, which is a -22.31% drop .