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Investing.com - Bernstein SocGen Group has raised its price target on Kanzhun Ltd. (NASDAQ:BZ) to $21.00 from $18.00 while maintaining a Market Perform rating on the Chinese online recruitment platform. The stock, currently trading at $22.08, has surged 60% year-to-date and appears slightly overvalued according to InvestingPro analysis.
The research firm highlighted Kanzhun’s announcement of $80 million in dividends for this year and an expanded $250 million share buyback program planned for the next twelve months. These initiatives represent a potential 3.3% capital return yield for investors. With a GREAT financial health score and strong balance sheet metrics from InvestingPro, the company appears well-positioned to execute these shareholder-friendly initiatives.
Bernstein analyst Robin Zhu noted that the company’s share count declined 1.8% year-on-year in the most recent quarter, while total share-based compensation expense decreased by 8.8% sequentially.
The firm suggested that solving Kanzhun’s cash offshoring challenges could potentially put approximately RMB16.0 billion ($2.2 billion) of balance sheet cash into play, representing about 22% of the company’s current market capitalization.
Bernstein indicated that the dividend and buyback announcements might be more significant developments than the company’s actual earnings results, which the firm expects will lead to only modest analyst revisions.
In other recent news, Kanzhun Ltd. reported its second-quarter 2025 results, which exceeded market expectations. Macquarie described the results as a "solid beat," highlighting an adjusted net profit that outperformed due to recovering demand and superior operating efficiency. Jefferies also noted that Kanzhun’s revenue met consensus estimates and surpassed its own projections, attributing the strong performance to effective cost control measures. Following these results, Macquarie raised its price target for Kanzhun to $26.70, maintaining an Outperform rating, while Jefferies increased its target to $24.00 and kept a Buy rating. In related developments, Kalsyang Limited, another recruitment platform, reported a 9.7% year-over-year revenue increase to 2.1 billion RMB and a 70.4% rise in net income to 710 million RMB for the second quarter of 2025. Kalsyang’s net profit margin improved to 33.8%, supported by advancements in AI technology and a recovering recruitment market. These recent developments highlight significant financial growth and strategic advancements within the recruitment industry.
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