Goldman Sachs reiterated its "Buy" rating on KUAISHOU-W, indicating that the market underestimates the valuation of its core business

Goldman Sachs released a report, reiterating a "Buy" rating for KUAISHOU-W (01024.HK) with a target price of HKD 87.

The bank analyzed the core controversies in investor discussions about KUAISHOU over the past two months, including the potential of its AI capabilities and competition from peers (such as Seedance 2.0), various tax-related issues, and potential tax pressures in 2026 (such as "traffic acquisition tax," value-added tax, corporate income tax, etc.), while exploring the company's overall growth prospects this year against a backdrop of a sluggish consumer environment.

The bank noted that KUAISHOU's stock price had previously been roughly in line with industry performance, but after recent adjustments, it has fallen below the forecasted price-to-earnings ratio of 12 times for 2026. They believe that KUAISHOU's current risk-reward profile is more favorable, as the market underestimates the valuation of KUAISHOU's AI/capability business. The bank's analysis also indicates that the impact of potential tax burdens has largely been reflected in the stock price