Goldman Sachs: Reiterates KUAISHOU-W "Buy" Rating with a Target Price of HKD 83
Goldman Sachs released a research report stating that it expects KUAISHOU-W's Keling AI new model to drive continuous improvement in KUAISHOU user engagement. It currently maintains its forecast for KUAISHOU's AI-related revenue to reach USD 154 million in the fiscal year 2025 (compared to the company's guidance of USD 125 million) and reiterates a "Buy" rating, giving a target price of HKD 83 based on an approximately 14 times earnings per share forecast for the end of 2026. KUAISHOU announced the Keling AI 2.5 Turbo new model yesterday (23rd), which has significantly improved capabilities in multiple dimensions such as text response, animation effects, style consistency, and aesthetic quality, further enhancing the controllability, stability, and consistency of video generation. The pricing for generating a 5-second video in high-quality mode is only 25 points, nearly 30% lower than the same level 2.1 model. Goldman Sachs expects the new Keling model to provide top-tier performance in AI video generation solutions at a more competitive cost, believing that the AI video generation industry is still in its early stages, with the market size rapidly growing and potentially disrupting traditional advertising and short drama production models, with the key being the continuously upgraded model capabilities and user penetration rates
According to the Zhitong Finance APP, Goldman Sachs released a research report stating that it expects KUAISHOU-W (01024)'s Keling AI new model to drive continuous improvement in Kuaishou user engagement. It currently maintains its forecast for Kuaishou's AI-related revenue to reach USD 154 million in fiscal year 2025 (compared to the company's guidance of USD 125 million) and reiterates a "Buy" rating, giving a target price of HKD 83 based on an approximately 14 times earnings per share forecast for the end of 2026.
Kuaishou announced the new Keling AI 2.5 Turbo model yesterday (23rd), which has significantly improved capabilities in multiple dimensions such as text response, animation effects, style consistency, and aesthetic quality. It further enhances the controllability, stability, and consistency of video generation, with a pricing of only 25 points for generating a 5-second video in high-quality mode, nearly 30% lower than the same level 2.1 model.
Goldman Sachs expects the new Keling model to provide top-tier performance AI video generation solutions at a more competitive cost, believing that the AI video generation industry is still in its early stages, with the market size rapidly growing and potentially disrupting traditional advertising and short film production models. The key lies in the continuously upgraded model capabilities and user penetration rates
