Morgan Stanley lowered the target price for KINGDEE INT'L to 11.5 yuan, rating it "in line with the market."

Morgan Stanley published a research report stating that in terms of artificial intelligence transformation, KINGDEE INT'L (00268.HK) has a visionary and proactive attitude, demonstrating top-notch execution in the industry. However, the market still needs to observe whether AI will replace the SaaS industry.

The firm mentioned that KINGDEE's management is highly confident in the AI transformation, believing it to be the company's fourth significant transformation since its establishment, while the previous three successful transformations have accumulated valuable experience for the team. For this year's outlook, the company is expected to maintain double-digit revenue growth, with subscription revenue expected to increase by over 20%, and AI business revenue expected to exceed 1 billion RMB.

The firm has raised its revenue forecasts for KINGDEE from this year to 2028 by 2%, 3%, and 4%, respectively, but has lowered its operating profit forecasts by 14%, 8%, and 9%. Additionally, it has reduced its target price from 14.2 HKD to 11.5 HKD, maintaining a rating of "in line with the market."