STOCKS | BofA Reiterates Buy On Kuaishou, Sees Upside From Kling AI

Bank of America reiterated its Buy rating on Kuaishou (01024) and kept its target price at HK$53, saying the stock offers attractive risk-reward and trades near a cyclical low in valuation, according to ETNet. The report said Kuaishou's Kling AI completed a new funding round at a valuation of $18 billion, with Kuaishou holding a 68% stake. That implies about $12 billion of Kling asset value for Kuaishou. As of June 2026, Kuaishou had $13 billion in net cash. On that basis, the company has a $25 billion valuation foundation, while its current market capitalisation is about 25% below that level. BofA said the main catalysts ahead are a major upgrade to the Kling AI model, which it expects to improve image generation quality, video length, motion smoothness, world-model capability and intelligent-agent functions. It also expects Kuaishou to benefit from recent technology breakthroughs in related industries in China. The bank added that pressure on the core business has already been reflected in its second-half 2026 earnings forecast, and it is watching the company's newly launched online game and the potential growth from faster Kling revenue after the model upgrade.