CMB International Securities analyst Saiyi He maintained a Buy rating on Kuaishou Technology Class B (1024 – Research Report) yesterday and set a price target of HK$80.00.
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Saiyi He has given his Buy rating due to a combination of factors that highlight Kuaishou Technology’s promising growth prospects. The company’s fourth-quarter results for 2024 showed a significant increase in total revenue and adjusted net profit, aligning with expectations and indicating strong financial performance. The forecast for 2025 suggests continued revenue growth, driven by a favorable shift in revenue mix and efficiency improvements, despite increased investments in AI.
Moreover, Kuaishou’s core commercial segments, particularly online marketing and e-commerce, have maintained robust growth. The company’s strategic focus on leveraging AI, such as the accelerated growth of Kling AI and its contribution to revenue, positions it well to capture new growth opportunities. Although AI investments are expected to impact margins slightly, the overall stable adjusted net margin outlook supports the Buy rating, as the benefits from revenue mix and marketing efficiencies are anticipated to offset these costs.
According to TipRanks, He is a 5-star analyst with an average return of 14.4% and a 59.69% success rate. He covers the Communication Services sector, focusing on stocks such as Baidu, Tencent Holdings Limited, and Iqiyi.
In another report released yesterday, Benchmark Co. also maintained a Buy rating on the stock with a HK$79.00 price target.