Jefferies Trims Kingsoft Cloud (KC) Price Target, Keeps Buy Rating

Jefferies Thomas Chong, the target price of the Kingsoft Cloud Holdings Ltd (Nasdaq: KC), reduced $ 18 from $ 18 on May 28 and kept a purchase classification. The amendment came just hours after the company’s results Q1 2025.

A computer engineer sits in front of many connected keyboards, showing the depth of cloud services provided by the company.

Kingsoft Cloud’s quarterly revenues reached 1,970.0 million yuan (271.5 million dollars), an increase of 10.9 % on an annual basis, but by 11.7 %, a quarter of a quarter of a quarter. The administration attributed the serial decline to seasonal factors and timing issues related to the delivery of products in the institution’s cloud sector.

But despite the challenges, Tao Zou, CEO of the company, is sure that the future of their cloud business is strong. He stated that “the importance of cloud services as an infrastructure in the era of artificial intelligence is gaining greater traction.” As such, the company “is completely committed to our investments related to artificial intelligence and high -quality and sustainable commercial development.”

Chung also touched on this aspect in his research note. He emphasized the strong demand for artificial intelligence services in Kingsoft Cloud, despite reducing the target price. It is worth noting that the total bills of the company for artificial intelligence work by 228 % year on year to 525 million yuan (72.975 million dollars). He also pointed out that the new Kingsoft Cloud Heroes’ approach can reduce the total profit margins, but will also reduce dependence on cash reserves. With the current price target at $ 16, the Jefferies evaluation reflects the financial market conditions and development of the Kingsoft Cloud.

Kingsoft Cloud Holdings Limited (Nasdaq: KC) is a leading cloud service provider in China. The company provides products such as infrastructure such as IAAS, platform services as a PAAS service, and Enterprise Cloud services. These products include advanced techniques such as artificial intelligence, huge data, the Internet of Things, and edge computing.

While we acknowledge the capabilities of the KingSoft Cloud Holdings Ltd (Nasdaq: KC) as an investment, our conviction is to believe that some artificial intelligence shares have a greater promise to provide higher and limited returns than negative risks. If you are looking for a more promising artificial intelligence inventory than KC and have 100x capabilities, check our report on the cheapest artificial intelligence stock.

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