Citi analyst Brian Gong upgraded Kingsoft Cloud to Buy from Neutral with an unchanged price target of $5. Kingsoft’s Q4 results were largely in line with expectations and Citi is glad to see the resumption of sequential revenue growth after the optimization of low-margin business and decent EBITDA margin improvement, the analyst tells investors in a research note. With fundamentals “likely bottoming out,” Citi upgrades Kingsoft Cloud post the results. It sees improvement ahead and notes the company started to generate artificial intelligence related sales in the second half of 2023.
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