Goldman Sachs Slashes Kingsoft's Price Target By Half

Goldman Sachs Slashes Kingsoft's Price Target By Half

Goldman Sachs analyst Piyush Mubayi downgraded Kingsoft Cloud Holdings Ltd KC to Neutral from Buy with a price target of $18, down from $37. The price target implies a 14.3% upside.

  • Mubayi stays constructive on China's cloud market that is likely to grow at 37% CAGR in 2020-2025 as per CAICT.
  • Related Content: Kingsoft Stock Drops On Q3 Revenue Miss, Margin Contraction
  • Mubayi observes Kingsoft accounted for 4.8% of China's IaaS + PaaS public cloud market in the first half of 2021.
  • Mubayi expects Kingsoft to see slower public cloud revenue growth of 23%/27%/24% in 2021/2022/2023, partially offset by multi-cloud adoption trends and Kingsoft's industry neutrality.
  • Meanwhile, Mubayi cut Kingsoft's organic enterprise cloud revenue growth to 66%/57%/80% in 2021/2022/2023, citing the negative impact from COVID resurgence on project deployment and slower traditional enterprises' digitalization.
  • Price Action: KC shares closed lower by 0.25% at $15.75 on Friday.

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