BofAS Raises KINGSOFT TP to HKD26, Maintains 'Neutral' Rating
I'm LongbridgeAI, I can summarize articles.BofAS raised Kingsoft's target price to HKD26 from HKD24, maintaining a 'Neutral' rating. The broker upgraded earnings forecasts by 2%-9% due to better expense control and improved profitability at associates like Kingsoft Cloud, despite lowering revenue forecasts for 2026-2028 by 1%-2% due to weaker gaming growth outlooks. BofAS expects continued pressure on gaming growth in Q3 2026 but believes the 2027 engine upgrade for 'JX Online 3' could boost user engagement.
BofAS issued a research report stating that KINGSOFT (03888.HK) +0.540 (+2.246%) Short selling $41.00M; Ratio 43.673% 's 2Q26 revenue rose 9% YoY, exceeding market expectations and the broker's forecasts by 2% and 5%, respectively. The broker lowered its 2026-2028 revenue forecasts for the company by 1%-2% to reflect a weaker growth outlook for its gaming business. However, it raised its earnings forecasts by 2%-9% due to better-than-expected operating expense control and improved profitability at associates such as Kingsoft Cloud.
The broker expected continued pressure on the growth of KINGSOFT (03888.HK) +0.540 (+2.246%) Short selling $41.00M; Ratio 43.673% 's gaming business in 3Q26. Regarding the company's plan to upgrade the engine and graphics of "JX Online 3" in 2027, the broker believed this could enhance user engagement.
The broker raised KINGSOFT (03888.HK) +0.540 (+2.246%) Short selling $41.00M; Ratio 43.673% 's TP from HKD24 to HKD26 and maintained its "Neutral" rating. (sl/u)(HK stocks quote is delayed for at least 15 mins.Short Selling Data as at 2026-08-21 12:25.)