Bank of America Securities maintains a "buy" rating on KUAISHOU-W (01024) with a target price of HK$63.

Bank of America Securities released a research report stating that it maintained a "buy" rating for KUAISHOU-W (01024) with a target price of 63 Hong Kong dollars, and believed that the valuation was attractive. The net cash is close to half of the stock price, attracting a cash PE ratio of about 5 times after the 2026 fiscal year. In the bank's SOTP valuation, the valuation of Kuaishou's AI is 31 Hong Kong dollars, equivalent to 18 billion US dollars, based on a forecasted fiscal year 2026 market-to-sales ratio of 35 times. The report indicated that after the Kuaishou investor conference, it was optimistic about Kuaishou's AI, as its AI video model has a leading position globally, and commercialization is accelerating. It is expected that there will be room for upside in the revenue forecast of Kuaishou AI, and the bank will closely monitor events related to the upgrade of Kuaishou's model and value release. The bank stated that Kuaishou announced in May that it is evaluating restructuring options for Kuaishou AI, which may involve external financing. The financing is mainly aimed at retaining and attracting talents. For Kuaishou AI's first public offering, the bank believes that it generally takes some time to obtain regulatory approval. For Kuaishou's core business, it is expected to resume growth as normalization of the base occurs.