Blazing Star Merger Sub completes Walgreens debt tender offer
On Monday, Citi analyst Brian Gong increased the price target for Kanzhun Ltd. (NASDAQ:BZ) to $18.50, up from the previous target of $16.50, while reiterating a Buy rating on the stock. Currently trading at $15.96, InvestingPro analysis suggests the stock is undervalued. Gong anticipates that Kanzhun will announce its fourth-quarter 2024 earnings on March 13, with revenue and adjusted earnings expected to align with consensus estimates.
The analyst noted that since October 2024, there has been a noticeable improvement in enterprise demand, which should contribute to year-over-year and quarter-over-quarter growth for the fourth quarter of 2024 despite broader macroeconomic softness. The company’s strong financial position is evident in its impressive 83% gross profit margin and 30.4% revenue growth in the last twelve months. Gong also mentioned that while the first quarter of 2025 might present challenging comparisons, Kanzhun is still projected to achieve slight year-over-year growth during the peak season following the Chinese New Year, indicating a continued recovery in demand across various sectors.
Gong’s analysis suggests that as comparisons normalize, there is a potential for growth in Kanzhun’s Corporate Credit Business (CCB) from the second quarter of 2025 onwards. Citi has consequently raised its earnings estimates for Kanzhun for the years 2024, 2025, and 2026 by 2%, 3%, and 2%, respectively.
The decision to maintain a Buy rating and increase the price target reflects Gong’s confidence in Kanzhun’s leading position within the online recruitment industry and the potential for a recovery starting from the second quarter of 2025. This outlook is based on the company’s performance and the anticipated demand trends in the sectors it serves.
In other recent news, Kanzhun Ltd. reported its third-quarter 2024 financial results, which aligned with revenue expectations and showed an earnings outperformance due to higher-than-anticipated other income. Citi has responded to these results by raising its price target for Kanzhun to $16.50, maintaining a Buy rating due to the company’s robust industry position and ongoing share repurchase program. The firm also adjusted its earnings estimates for Kanzhun upwards for 2024, 2025, and 2026 by 3%, 1%, and 1%, respectively. Meanwhile, ConGen Limited announced a strong financial performance for the third quarter of 2024, with a 19% year-over-year increase in revenue, reaching RMB 1.91 billion, and a net income of RMB 461 million. The company projects fourth-quarter revenue growth of up to 14.5% year-over-year, emphasizing its strategic focus on blue-collar and small enterprise markets. ConGen Limited’s effective business model has been crucial in driving growth, particularly in the blue-collar sector, which contributed over 38% of total revenue. The company remains committed to maintaining profitability and improving operational efficiency without major new investments.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.