Kuaishou shares may outperform in next 60 days – Morgan Stanley
Kuaishou shares may outperform in next 60 days – Morgan Stanley

Kuaishou shares may outperform in next 60 days – Morgan Stanley

 

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Morgan Stanley forecast that there is over 80% chance that shares of Chinese short video platform Kuaishou will outperform the broader market in the coming 60 days.

The stock was rated at Overweight as the recent market sell-off has rendered its near-term valuation more compelling, it said. The target price for the stock was set at $100.

Kuaishou will announce the 2Q22 results on 23 August. Morgan Stanley anticipated that Kuaishou has the potential to realize the largest margin improvement in the Chinese online entertainment sector, after DouYu International Holdings Ltd and Tencent Music Entertainment Group demonstrated robust cost control capability in 2Q22 results.

Kuaishou is expected to post even stronger growth in the second half of the year, on the back of its closed-loop ecosystem and strong traffic growth, according to the note.