UBS raised Kuaishou’s target price to HK$86, rating kept at Buy
STOCKS VIEWS & ANALYSIS
UBS raised Kuaishou’s target price to HK$86, rating kept at Buy
STOCKS VIEWS & ANALYSIS

UBS raised Kuaishou’s target price to HK$86, rating kept at Buy

 

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Chinese short video platform Kuaishou reported a solid Q2 performance, with gross merchandise volume hiking 39% year over year, and UBS remained bullish on the growth opportunities of short-form video (SFV)-based e-commerce structure, the broker said in a note. 

Kuaishou is expected to record a 32% growth in GMV for full year 2023, and its management has reiterated its medium-term GMV target of 2 trillion yuan, UBS said. 

The broker kept its forecast of Kuaishou’s revenue broadly unchanged, expecting strong performance in advertising and e-commerce business to offset the weakness in live sales, and consider it being on track to turn around from loss. 

UBS expected the company’s EPS to be 1.91 yuan in 2023, 3.54 yuan in 2024, and 5.54 yuan in 2025, while adjusted net margins for 2023 and 2024 are expected to be 7.3% and 11.6% respectively, compared to minus 4.6% in 2022.

UBS raised the target price for Kuaishou from HK$86 to HK$90 and maintained its Buy rating.