Multiple prominent securities firms have recently raised their target prices for Fourth Paradigm (06682), expressing unanimous optimism about the AI pioneer's growth potential and unique value proposition in the "Artificial Intelligence+" era.
Bank of Communications International significantly raised Fourth Paradigm's target price from HK$64 to HK$81 while maintaining a "Buy" rating. The firm expects the company's revenue to grow 7-22% from 2025-2027, maintaining projections for profitability turnaround in 2025 and achieving modest profits in 2026.
Daiwa Securities similarly reaffirmed its "Buy" rating on Fourth Paradigm, raising the target price from HK$58 to HK$74. Huatai Securities also joined the bullish camp, upgrading its target price to HK$77.89, highlighting the company's continued AI scale effects.
**Solid Performance Drives Analyst Upgrades**
The recent rating upgrades for Fourth Paradigm stem from its solid performance and strong growth expectations. In the first half of 2025, the company delivered impressive results with total revenue reaching 26.26 billion yuan, up 40.7% year-over-year. More notably, adjusted net loss attributable to shareholders narrowed significantly by 71.2% to 43.7 million yuan, demonstrating clear improvement in profitability.
The core "Prophet AI Platform" business performed particularly strongly, with revenue surging 71.9% to 21.49 billion yuan, accounting for 81.8% of total company revenue. Through its "AI Agent + World Model" technological approach, the platform penetrates high-value scenarios in traditional industries including ports, legal services, healthcare, and manufacturing, providing AI solutions that generate tangible benefits.
**Policy Support for AI+ Development Creates Clear Long-term Growth Path**
The State Council's "Opinions on Deepening the Implementation of Artificial Intelligence+ Actions" issued on August 26 has created a favorable policy environment for AI companies. Bank of Communications International explicitly noted that this policy will benefit Fourth Paradigm's business expansion. The company has already positioned itself in AI+ energy storage and Phancy consumer electronics sectors, demonstrating its ability to capitalize on emerging trends.
Beyond policy support, the company maintains substantial financial reserves. According to public information, Fourth Paradigm raised a total of HK$2.7 billion through placements within six months, ensuring adequate funding. These funds will primarily support R&D investments in embodied intelligence and potential acquisition opportunities, providing strong momentum for future growth.
As a leader in enterprise-level AI solutions, Fourth Paradigm's "Prophet AI Platform" has become the preferred infrastructure for AI upgrades across many traditional industries. With national-level "AI+" policy support and continued release of enterprise AI application demand, Fourth Paradigm is well-positioned to leverage its technological expertise and platform advantages to capture industry growth dividends while further consolidating its market leadership position.
The coordinated target price upgrades by multiple investment institutions reflect capital market confidence in the company's future development prospects.