Jefferies has released a research report raising the target price for KUAISHOU-W (01024) from HK$92 to HK$94, while maintaining a "buy" rating. The firm has kept its revenue and non-GAAP profit forecasts for the company unchanged for this year, but has raised its full-year revenue forecast for Kling by 25% to $125 million. The firm noted that management highlighted during a conference call the stable progress of Kling's artificial intelligence models and AI-enabled various business segments. Jefferies has raised its third-quarter revenue growth forecast for KUAISHOU-W to 13% year-on-year, which is 2 percentage points higher than its previous estimate. The gross merchandise value (GMV) growth forecast has been raised by 3 percentage points to 15% compared to the original projection. The other revenue growth forecast has been increased by 19 percentage points to 36%, reflecting growth in e-commerce and Kling revenue. The third-quarter non-IFRS net profit is expected to reach RMB 4.84 billion, higher than the firm's original estimate of RMB 4.3 billion.
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