STOCKS | Goldman Sachs Lowers Kuaishou Target Price, Maintains 'Buy' Rating

Goldman Sachs has released a report on May 28, indicating a 5.4% reduction in the target price for Kuaishou (01024.HK), lowering it from HKD 74 to HKD 60, while maintaining a 'buy' rating. According to Jin10, Goldman Sachs has also revised its revenue expectations for Kuaishou from 2026 to 2028, reducing them by 2% to 0%. Additionally, the net profit forecast for the same period has been lowered by 4% to 7% to account for the company's additional investments in AI-related fields. Kuaishou's first-quarter results for 2026 largely met expectations, with core advertising revenue increasing by 9% year-on-year, although operating profit declined by 15% due to AI investments and other factors. A highlight is Kuaishou's subsidiary, Kuaishou Ling, whose annual recurring revenue approached $500 million by the end of March and continued to maintain growth momentum into the second quarter of 2026. Goldman Sachs believes that Kuaishou, as a stable and consistently growing major video platform, should support its current stock price with a total stock buyback/dividend amount close to 4%. Furthermore, the surge in Kuaishou Ling's ARR and any potential spin-off plans could drive a shift in Kuaishou's overall development direction.