Analysts at CLSA have initiated coverage on KNOWLEDGE ATLAS (02513) with a Hold rating, setting a target price of HK$1,500.

The firm cited elevated valuation as the primary reason for the Hold recommendation, noting the stock's forecast price-to-sales ratio for fiscal 2027 is approximately 57 times.

The report highlights that KNOWLEDGE ATLAS AI is a leading foundational model lab in China, having successfully translated cutting-edge research into token-based enterprise revenue.

CLSA expects the company to be well-positioned to capture value in the AI model layer over the next decade, supported by its strong talent pool, enterprise client base, and data flywheel effect.