Kingsoft Cloud (KC, Financial) shares, which surged by 42.27%, continued to rise by 1.38% to $6.62. A recent report from CICC indicated that Kingsoft Cloud's third-quarter revenue grew by 16% year-over-year to 1.89 billion yuan, meeting market expectations. The company's adjusted EBITDA reached 185 million yuan, significantly surpassing forecasts due to effective cost and expense management. CICC maintains an "outperform" rating and has raised the target price by 8% to $6.5, reflecting optimism about the company's improved business structure and growth prospects.
Additionally, CLSA has increased its revenue forecasts for Kingsoft Cloud for the fiscal years 2024 and 2025 by 1% and 6%, respectively. It also raised the adjusted net profit forecast by 64 million yuan and 100 million yuan, citing robust growth in AI-related business. The target price has been adjusted from $3 to $5.5, with a continued "outperform" rating.
Furthermore, Bank of America Securities anticipates increased AI business revenue, adjustments in the enterprise cloud project portfolio, and effective cost control measures to enhance fourth-quarter gross profit margins year-over-year. The bank has revised its revenue forecast for Kingsoft Cloud for 2024 to 2026 upwards by 4% to 8%, driven by the rapid expansion of AI business.
