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Kingsoft Cloud upgraded to Buy from Neutral at BofA

BofA analyst Daley Li upgraded Kingsoft Cloud (KC) to Buy from Neutral with a price target of HK$10.60, up from HK$6.70. The post-Q2 upgrade comes given higher revenue growth visibility driven by AI and incremental demand from Xiaomi ecosystem; improving business quality; and improving profitability on operating leverage and stringent cost control with stable opex spending in the next few years, the analyst tells investors in a research note. The firm added that it expects Kingsoft to reach adjusted operating-level breakeven in FY27.

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