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Kingsoft Cloud assumed with a Buy at UBS

UBS analyst Wei Xiong assumed coverage of Kingsoft Cloud (KC) with a Buy rating with a price target of $14, up from $12.50. UBS thinks Kingsoft Cloud stands to benefit from the growing large language model training and inference demand, and forecasts a turnaround in its public cloud growth, with a 20% revenue compound annual growth rate in 2025-2027, the analyst tells investors in a research note. UBS also expects its non-GAAP operating margin to narrow losses before it turns profitable in 2027 due to a higher AI revenue mix and scale-driven cost efficiency.

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