Shares of Knowledge Atlas (2513 HK) tumbled as much as 9.7% in early Friday trading in Hong Kong, heading for their first decline in four sessions and currently lagging behind the Hang Seng Tech Index.

Analysts at Goldman Sachs, including Ronald Keung, stated in a report that considering the strong performance of the GLM series models, a cumulative stock price surge of approximately 1600% since its listing, and a free float percentage in the single digits, they believe the company's valuation for the next 12 months has largely reached a reasonable level.

The report noted that Knowledge Atlas remains the most competitive player among AI model providers. Goldman Sachs initiated coverage with a Neutral rating and a target price of HK$1,880.

As of 9:33 a.m. local time, Knowledge Atlas shares were down 5.1%, trading at HK$1,929.