- China's leading cloud service provider Kingsoft Cloud Holdings Ltd KC, weighed a dual listing of its shares on the Hong Kong Stock Exchange.
- Analyst Rating: JPMorgan analyst Alex Yao downgraded Kingsoft to Underweight from Neutral with a price target of $3.50, down from $8 (17.7% upside).
- Yao found the China internet sector is unattractive on a 6-12 month view as the global investors priced in China's geopolitical risks and incremental concerns about regulatory risks.
- Speculative growth names like Kingsoft tend to have higher beta than the sector average, given their higher-risk, more aggressive growth assumption and uncertain prospects.
- He saw the group to "generally suffer more than larger and more proven Internet names during the sell-off."
- Price Action: KC shares traded higher by 23.50% at $3.17 on the last check Tuesday.
© 2024 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.
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