Goldman Sachs maintains KE rating as "Buy" and lowers target price to 48 yuan

AASTOCKS
2025.11.17 09:15

Goldman Sachs recently released a report indicating that during the conference call for Beike-W (02423.HK) third-quarter financial results in 2025, management raised several key themes, including that the sluggish real estate market may put pressure on the outlook for total transaction volume, and that no further policy support is expected before the end of the year. Additionally, revenue growth from emerging businesses is temporarily slowing due to a strategic shift towards profitability and changes in accounting standards.

Based on a downward revision of 4% to 5% in total transaction volume estimates, the firm has lowered its revenue forecasts for Beike from 2025 to 2027 by 5% to 11%. Due to reduced operating leverage, net profit forecasts for 2025 to 2027 have been cut by 13% to 15%, although this impact is partially offset by improvements in the company's efficiency.

Accordingly, Goldman Sachs has lowered its 12-month target price for Beike's U.S. stock (BEKE.US) to $18.6 and its target price for the Hong Kong stock to HKD 48, maintaining a "Buy" rating, with expected upside potential of 13% and 10%, respectively. (hc/)

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