---
title: "G Sachs Downgrades KUAISHOU-W  to \"Neutral\", Slashes TP 44% to HKD38, Expects Continued Slowdown in Core Business"
type: "News"
locale: "en"
url: "https://longbridge.com/en/news/296562844.md"
description: "Goldman Sachs downgraded Kuaishou-W to 'Neutral' from 'Buy', slashing its target price by 44% to HKD38. Citing continued slowdowns in core commercial business and elevated AI spending, the broker expects significant net profit revisions. Revenue forecasts for 2026-2028 were cut by 5-10%, while net profit estimates were reduced by 40-45% due to rising R&D costs and margin pressures. The firm awaits clearer signs of core business improvement or Kling AI progress before becoming more positive."
datetime: "2026-08-21T03:21:41.000Z"
locales:
  - [zh-CN](https://longbridge.com/zh-CN/news/296562844.md)
  - [en](https://longbridge.com/en/news/296562844.md)
  - [zh-HK](https://longbridge.com/zh-HK/news/296562844.md)
generator: "portal-rs"
---

# G Sachs Downgrades KUAISHOU-W  to "Neutral", Slashes TP 44% to HKD38, Expects Continued Slowdown in Core Business

G Sachs said in a report that after KUAISHOU-W (01024.HK) -0.140 (-0.416%) Short selling $2.34B; Ratio 27.795% 's 2Q results, it downgraded the stock rating from "Buy" to "Neutral" and sharply cut the TP from HKD68 to HKD38, representing a 44.1% reduction.

The broker believes the slowdown in KUAISHOU-W (01024.HK) -0.140 (-0.416%) Short selling $2.34B; Ratio 27.795% 's core commercial business is likely to continue over the coming quarters. Coupled with elevated AI spending, this will lead to a substantial downward revision in the company's net profit. Although KUAISHOU-W (01024.HK) -0.140 (-0.416%) Short selling $2.34B; Ratio 27.795% is gradually shifting its positioning from a pure short-video platform to a community more focused on AI technology, and Kling AI continues to expand in scale, the broker noted that the core commercial business (advertising + e-commerce) will still contribute the vast majority of revenue and profit in 2026 and 2027, weighing on short-term growth visibility. Therefore, it will wait for more evidence of improvement in the core business, as well as trends in Kling's annual recurring revenue or spin-off progress, before turning more positive on the stock.

The broker lowered its 2026-2028 revenue forecasts for KUAISHOU-W (01024.HK) -0.140 (-0.416%) Short selling $2.34B; Ratio 27.795% by 5% to 10% to reflect weak advertising growth and a slowdown in the livestreaming business. It also cut net profit forecasts by 40% to 45% due to operating deleveraging, rising research and development expenses related to Kling AI investments, and gross margin decline caused by an unfavorable advertising mix. (ha/da)(HK stocks quote is delayed for at least 15 mins.Short Selling Data as at 2026-08-20 16:25.)

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> **Disclaimer: This article is for reference only and does not constitute any investment advice.**