In a report released today, Saiyi He from CMB International Securities maintained a Buy rating on SenseTime Group, Inc. Class B, with a price target of HK$2.50.
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Saiyi He has given his Buy rating due to a combination of factors, most notably SenseTime’s stronger‑than‑expected FY25 performance driven by rapid expansion of its generative AI operations. Revenue exceeded market forecasts with robust growth in AI model training and inference, while tighter cost controls and operating leverage led to a substantial narrowing of adjusted net losses and a clear path toward breakeven at the EBITDA level.
Looking ahead, He sees continued upside from SenseTime’s plan to enhance multimodal model capabilities, roll out next‑generation NEO‑based models, and further scale its AI agent products, which are already showing strong user and enterprise adoption. He also highlights the computer vision segment’s transition into a new growth phase and, together with higher revenue forecasts and an increased target price supported by a 12x FY26E EV/sales multiple, concludes that the stock offers attractive risk‑reward at current levels, justifying a Buy recommendation.
He covers the Communication Services sector, focusing on stocks such as Iqiyi, Baidu, and Meta Platforms. According to TipRanks, He has an average return of 7.5% and a 47.78% success rate on recommended stocks.
In another report released today, DBS also maintained a Buy rating on the stock with a HK$2.50 price target.