Goldman Sachs downgraded Kingsoft Cloud to Sell from Neutral with a price target of $5.10, up from $4. After 90% share price rise year-to-date, valuation of Kingsoft Cloud appears stretched to the firm across China and global cloud computing/enterprise software coverage, relative to its growth/profitability outlook. Goldman believes its near-term revenue momentum remains softer vs peers; incremental revenue contribution from Kingsoft Office is limited as Kingsoft Group only contributes to low single digit of KC‘s revenue; KC’s lagging in PaaS/SaaS solutions and GAI/LLM initiatives may imply weaker longer-term revenue growth/profitability than other local leaders.
Published first on TheFly
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