Goldman Sachs has raised its rating on MiniMax shares from Neutral to Buy, setting a target price of HKD 1,000. The upgrade is primarily based on the company's robust annual recurring revenue (ARR) trend observed since the beginning of the year.

Goldman Sachs analyst Ronald Keung noted in a report that the upcoming release of the M3 model and Conch 3 this month represents the next critical milestone. These developments are expected to shift market focus from MiniMax's popular M2-based agent application to the high-value code generation capabilities of M3/Conch 3 in full-modal applications.

Based on strong ARR performance in the first quarter, the firm has increased its revenue forecasts for 2026 and 2027 by 25% and 11%, respectively. The 40% decline in share price since the March peak has created a favorable risk-reward profile. The stock's correction over the past month is attributed to concerns about model competition, doubts regarding video generation potential amid the impact of multimodal SeeDance 2.0, and technical selling pressure following the expiration of the six-month lock-up period for pre-IPO and cornerstone investors in early July.