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Investing.com - Jefferies has raised its price target on Kingsoft Cloud (NASDAQ:KC) to $17.00 from $16.00 while maintaining a Buy rating on the stock. According to InvestingPro data, the stock is currently trading near Fair Value, with analyst targets ranging from $12.74 to $26.21.
The firm’s decision follows Kingsoft Cloud’s second-quarter results, which showed revenue exceeding both consensus estimates and Jefferies’ own projections, though adjusted EBITDA was impacted by one-time losses. The company, now valued at $3.85 billion, has demonstrated strong revenue growth of 14.67% over the last twelve months.
Jefferies highlighted management’s comments on solid artificial intelligence demand and rising AI revenue contribution in the company’s public cloud segment, with revenue growth in the second half of the year expected to outpace the first half. InvestingPro analysis shows the stock has gained 31.55% year-to-date, with additional insights available through their comprehensive Pro Research Report.
The firm anticipates gross profit margin stabilization in the second half of the year, factoring in finance lease arrangements in chip procurement.
Jefferies also projects continued improvement in non-GAAP operating margin and net margin for Kingsoft Cloud over the next several years, supporting its maintained Buy rating.
In other recent news, Kingsoft Cloud Holdings Ltd reported its Q2 2025 earnings, significantly surpassing analysts’ expectations. The company achieved an earnings per share (EPS) of -0.11, which was a substantial improvement over the forecasted -0.97, marking an 88.66% surprise. This positive earnings result highlights the company’s ability to perform better than anticipated despite broader market challenges. Analysts had predicted a much larger loss, making the actual results notable. Despite the positive earnings news, the stock experienced a slight premarket decline, reflecting cautious investor sentiment. This development is part of a broader context of market conditions that investors are carefully considering. The earnings results are a key indicator for stakeholders assessing the company’s financial health. These recent developments are crucial for investors keeping an eye on Kingsoft Cloud’s performance and future prospects.
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