Bank of America: Market concerns about AI video competition may be overestimated. The impact on the revenue of Keling from the release of competing products is limited.

Recently, the globally renowned AI benchmark testing agency Artificial Analysis released the latest global video generation large model ranking. The Kling 3.0 Pro model ranked first in the video track of Wen Sheng Videos with a benchmark test score of 1240 Arena ELO. In the top 15, there are a total of 7 Kling models on the list. Industry analysts believe that the previously released Kling 3.0 models have industry-leading advantages in video realism, consistency, and controllability, indicating that AI is officially entering the core of industrial-level visual production for film and television. At the same time, the Bank of America Global Research Department issued a research report on Kuaishou on February 25, stating that the recent market concerns about competition in the AI video field may be exaggerated, and reiterated its "buy" rating on Kuaishou. The research report pointed out that the recent stock price correction was mainly due to the release of competing models, but the institution believes that the increase in AI video generation and supply will help drive overall industry expansion. As the penetration rate of AI video generation technology increases, the demand for Kling is expected to increase, and the improvement in AI video content supply may also have a positive impact on Kuaishou's short video business. BofA also emphasized that Kling still maintains a leading position in model capabilities and product pace. It stated that the current version of Kling 3.0 is relatively perfect in terms of functionality coverage and comprehensive capabilities. At the same time, Kling and some competitors have differences in target customer groups and geographical layouts, with Kling focusing more on overseas markets, professional creators, and corporate clients. On the data side, the research report cited third-party mobile revenue tracking data indicating that the impact of competing models on Kling's mobile revenue trend is limited. In addition, BofA reviewed historical data and pointed out that when Google released VEO 3.0 on May 20, 2025, the market also worried about competition risks, but Kling's overseas daily revenue remained stable in the following month and gradually increased, now reaching more than double the level at that time. The research report believes that Kling's revenue growth is mainly driven by its own model upgrades, and the impact of competitor releases is limited. In terms of valuation, the institution gave Kuaishou a target price of 94 Hong Kong dollars, based on a partial valuation method, with the core business valued at a 13 times price-to-earnings ratio expected for 2026, and the Kling AI business valued at a 35 times price-to-sales ratio. Market analysts believe that the Kling 3.0's top ranking in the international authoritative evaluation system will help strengthen its leading position in the global AI video generation track and further solidify its competitive foundation in professional creation and enterprise-level application scenarios.