G Sachs Cuts KINGSOFT CLOUD TP to USD17, Rating Buy

Goldman Sachs lowered Kingsoft Cloud'starget price to USD17 from USD19.5, maintaining a Buy rating. The adjustment follows a 23% stock decline driven by investor concerns over the gap between management's optimistic capex outlook and unchanged revenue guidance. Goldman believes the sell-off was an overcorrection, citing that the capex plan supports ~35% YoY revenue growth in 2026.

G Sachs issued a report stating that KINGSOFT CLOUD (03896.HK) -0.540 (-9.818%) Short selling $38.18M; Ratio 12.100% is expected to announce its results for 2Q26 in mid-to-late August. Since releasing its 1Q results at the end of May, the stock price has fallen 23%, mainly due to investor concerns over a disconnect between management's optimistic capital expenditure outlook and seemingly unchanged revenue guidance.

G Sachs believes the share price of KINGSOFT CLOUD may have overcorrected. Based on the capital expenditure execution rate in 1Q, management's outlook for more than 30% YoY revenue growth in 2026 should represent the base-case scenario; while the RMB15 billion to RMB20 billion capital expenditure outlook represents a more optimistic scenario, which according to the broker's estimates could support approximately 35% YoY revenue growth in 2026. It lowered the US stock TP on Kingsoft Cloud Holdings Limited (KC.US) from USD19.5 to USD17. Rating was maintained at Buy. (ha/)(HK stocks quote is delayed for at least 15 mins.Short Selling Data as at 2026-07-17 12:25.) (Real-time Streaming US Stocks Quote; Except All OTC quotes are at least 15 minutes delayed.)