Following Kuaishou Technology’s latest earnings announcement, analysts cut their revenue forecasts and target prices. The share price fell 14% to HK$34.42.
In the week after the quarterly results were announced, analyst sentiment toward Kuaishou Technology shares changed, and the share price fell 14% to HK$34.42. Revenue was RMB36.0 billion, broadly in line with analysts’ forecasts before the earnings announcement.
Following the earnings announcement, analysts updated their earnings forecast models. The latest consensus forecasts call for 2026 revenue of RMB138.2 billion and EPS of RMB1.38, compared with pre-announcement forecasts of RMB147.8 billion in revenue and EPS of RMB3.06.
As market sentiment turned more negative, the average analyst target price was lowered to HK$50.63. Target prices range widely, from the most optimistic at HK$102 to the most pessimistic at HK$27.63, highlighting the dispersion in forecasts.
Revenue growth is expected to slow compared with its past growth, with an annualized decline of 8.4% forecast through the end of 2026. While the industry as a whole is expected to grow in the short term, the company is seen as lagging behind its peers.