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Positive Outlook for KE Holdings Inc. Despite Macroeconomic Challenges: Buy Rating Affirmed by Eddy Wang

Positive Outlook for KE Holdings Inc. Despite Macroeconomic Challenges: Buy Rating Affirmed by Eddy Wang

Morgan Stanley analyst Eddy Wang maintained a Buy rating on KE Holdings Inc. Sponsored ADR Class A (BEKEResearch Report) today and set a price target of $24.00.

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Eddy Wang’s rating is based on several key factors that suggest a positive outlook for KE Holdings Inc. Despite a challenging macroeconomic environment, the company is expected to maintain its market share in both the existing and new home sectors. This stability, coupled with improved cost control measures, is anticipated to enhance margins, particularly in the home renovation and rental segments.
Furthermore, the projected revenue growth of 18% year-over-year for 2025, along with a non-GAAP net profit margin of 7.8%, supports a favorable view. Although the price target has been adjusted from US$27 to US$24 due to macro uncertainties and increased fixed costs, the valuation remains attractive with an expected 18% earnings CAGR from 2025 to 2028. These factors collectively underpin the Buy rating given by Eddy Wang.

According to TipRanks, Wang is ranked #8853 out of 9519 analysts.

In another report released on May 7, CMB International Securities also maintained a Buy rating on the stock with a $26.30 price target.

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