Morgan Stanley starts Kingsoft Cloud at overweight, sets $15 target

According to CNBC, Morgan Stanley initiated coverage of Kingsoft Cloud with an overweight rating and a $15 price target, implying 64% upside from Monday’s close, citing the company’s shift toward AI cloud, accelerating AI revenue and improving profitability supported by Xiaomi and Kingsoft Group. The bank said Kingsoft Cloud has shown pricing power amid a global chip shortage and could benefit from partnerships including an agreement to provide core infrastructure to Xiaomi’s AI ecosystem and smart home platforms. Shares were up 3% in premarket trading after the call; the stock is down nearly 12% year to date, and all 11 analysts tracked by LSEG rate it buy or strong buy.