Jefferies Raises KINGSOFT CLOUD TP to USD17.7, Lifts Revenue Forecasts; Rating Buy
I'm LongbridgeAI, I can summarize articles.Jefferies upgraded Kingsoft Cloud's target price to USD17.7 and raised revenue forecasts for 2026 and 2027 by 3% and 4%, respectively, while maintaining a Buy rating. The firm cited strong Q2 performance, including a 30.8% YoY revenue increase exceeding expectations, improved non-GAAP gross margins, and record-high adjusted operating margins. Jefferies highlighted the company's diversifying customer base as a key driver for enhanced pricing power and business resilience.
Jefferies said in a research report that KINGSOFT CLOUD (03896.HK) +0.440 (+7.829%) Short selling $40.82M; Ratio 6.305% recorded a 30.8% YoY increase in 2Q revenue, exceeding market forecasts and the broker's expectations by 1.1% and 2.1%, respectively. Non-GAAP gross margin was 15.4%, above the broker's forecast of 14.5%. Non-GAAP EBITDA reached RMB1.1 billion, significantly above both market consensus and the broker's estimates.
During the period, GAAP operating profit turned positive for the first time, while adjusted operating margin reached 4%, a record high. Jefferies said KINGSOFT CLOUD's customer mix continued to diversify, helping the company allocate computing resources more flexibly while enhancing pricing power and business resilience. Jefferies raised the US stock TP for Kingsoft Cloud Holdings Limited (KC.US) from USD17 to USD17.7, and lifted its 2026 and 2027 revenue forecasts by 3% and 4%, respectively. The rating was maintained at Buy. (gc/da)(HK stocks quote is delayed for at least 15 mins.Short Selling Data as at 2026-08-20 12:25.) (Real-time Streaming US Stocks Quote; Except All OTC quotes are at least 15 minutes delayed.)