Morgan Stanley see Kuaishou’s Q2 results to beat consensus, with Overweight rating
COMPANY NEWS POLICY & REGULATION STOCKS
Morgan Stanley see Kuaishou’s Q2 results to beat consensus, with Overweight rating
COMPANY NEWS POLICY & REGULATION STOCKS

Morgan Stanley see Kuaishou’s Q2 results to beat consensus, with Overweight rating

 

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Morgan Stanley said Chinese short video-sharing platform Kuaishou’s second-quarter results is expected to beat market consensus with positive surprises from its GMV and gross profit.

The company will release the results by the end of the month.

Kuaishou’s e-commerce Gross Mechandize Value (GMV) is expected to grow by more than 30% year over year in June, and the growth accelerated further in early July, primarily driven by company-specific factors such as higher utilization of public domain traffic and strong traffic growth, according to a note from the bank on Wednesday.

The company’s gross profit marging, under a base case scenario, was estimated to grow by 1 percentage point from the previous quarter and improve further to grow by 1.5 – 2 percentage points quarter on quarter in the second half of this year, it said.

Morgan Stanley maintained the Overweight rating for Kuaishou, with a target price of $100. Kuaishou gained 3.6% in Hong Kong to close at HK$79.25 on Wednesday.