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On Monday, Kanzhun Ltd. (NASDAQ: BZ), a leading online recruitment platform in China, received a Buy rating from CMB International Securities with a price target of $19.50. Currently trading at $13.90, InvestingPro analysis suggests the stock is undervalued, with analysts’ targets ranging from $13.99 to $27.99. The new coverage by CMB International is based on Kanzhun’s dominant market position and strong growth prospects, supported by the company’s impressive 83.15% gross profit margin and GREAT financial health score.
The firm highlighted Kanzhun’s status as the largest online recruitment platform in China by revenue and Monthly Active Users (MAUs) for the year 2024. CMB International Securities attributes this success to the company’s innovative direct recruitment model, which is supported by a broad enterprise and user base, as well as advanced recruitment facilitation technology. The company’s robust performance is reflected in its strong 23.58% revenue growth over the last twelve months.
CMB International Securities forecasts a Compound Annual Growth Rate (CAGR) of 10% in total revenue from fiscal year 2025 to 2027. This growth is expected to be fueled by the increasing online penetration of recruitment services, robust expansion in the blue-collar job sector, and a rebound in the white-collar job market.
In terms of profitability, the analyst projects a significant rise in adjusted operating income, estimating a CAGR of 20% over the same three-year period. This expectation is based on the anticipated revenue growth coupled with operating leverage.
The price target of $19.50 is set by applying a 20 times multiple to the company’s estimated earnings per share for the year 2025. The initiation of the Buy rating reflects confidence in Kanzhun’s business model and its potential for continued growth in the coming years.
In other recent news, Kanzhun Ltd. has reported its fourth-quarter earnings, which met analyst expectations and showcased the company’s ongoing focus on artificial intelligence (AI). The company is planning to launch a new suite of AI products, aiming to enhance user experience and efficiency on its Boss Zhipin platform. Analysts from Bernstein and Jefferies have reacted positively, with Bernstein increasing its stock price target to $18 and Jefferies raising it to $20, citing the company’s AI initiatives as a key factor. Jefferies also maintained a Buy rating on Kanzhun, expressing confidence in its growth potential and margin improvements by 2025.
The management highlighted positive trends in operating metrics, such as an increase in active users and job listings since the Chinese New Year. These developments have positioned Kanzhun favorably in the recruitment market, particularly with its AI-driven platforms. Meanwhile, Changjin Limited reported a 15% year-over-year revenue increase for the fourth quarter of 2024, reaching RMB 1.82 billion, with full-year revenue climbing 24% to RMB 7.36 billion. The company’s strong financial performance was bolstered by strategic innovations in AI, with a focus on expanding its user base and improving gross margins.
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