UBS upgraded Kingsoft Cloud (KC) to Buy from Neutral with a price target of $12.50, up from $4.20. The company’s “solid” Q3 beat has boosted expectations for Kingsoft’s continued revenue and margin recovery, backed by artificial intelligence and the company’s ecosystem support, the analyst tells investors in a research note. With “surging” cloud usage, UBS estimates Kingsoft Corp. and Xiaomi’s revenue contribution to Kingsoft Cloud to exceed 40% by 2027 from 20% in 2024, driving 13% annual revenue growth. Despite an over 100% price rally year-to-date, Kingsoft Cloud shares are still trading at a valuation discount versus China independent cloud peers, which underestimates the company’s potential opportunities, contends the firm.
Don't Miss our Black Friday Offers:
- Unlock your investing potential with TipRanks Premium - Now At 40% OFF!
- Make smarter investments with weekly expert stock picks from the Smart Investor Newsletter
Published first on TheFly – the ultimate source for real-time, market-moving breaking financial news. Try Now>>
See the top stocks recommended by analysts >>
Read More on KC:
- Kingsoft Cloud Maintains Stable Share Structure in November
- Kingsoft Cloud upgraded to Buy from Neutral at Nomura
- Kingsoft Cloud Reports Strong Q3 2024 Growth
- Walmart higher, Lowe’s lower after earnings: Morning Buzz
- Kingsoft Cloud Renews Key Agreements with Xiaomi and Kingsoft
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
