Morgan Stanley has revised its outlook on Kuaishou, cutting its target price from HK$65 to HK$40 and downgrading the stock from Overweight to Equal-Weight. The firm cited a significant reduction in Kuaishou’s full-year profit guidance, which has been cut in half, as a key factor behind the downgrade.

According to Jin10, Morgan Stanley noted that a potential turning point for Kuaishou’s performance remains at least several quarters away. The bank’s analysis suggests that the company’s current challenges and the slowdown in growth are likely to persist before any substantial recovery can be expected.

Morgan Stanley also slashed its earnings forecasts for Kuaishou by a range of 43% to 71%, reflecting a more cautious outlook for the company’s profitability. The new forecast now projects core profits of approximately 14 billion HKD, indicating a significant decline from previous estimates.

The downgrade and target price cut highlight ongoing concerns about Kuaishou’s near-term prospects amid a challenging market environment. Investors and analysts will be watching closely to see how the company navigates these headwinds and whether its strategic adjustments will eventually lead to a rebound. #Kuaishou #StockUpdate #MorganStanley