Kingdee International Software Group Co (KGDEF – Research Report), the Technology sector company, was revisited by a Wall Street analyst today. Analyst Boris Van from Bernstein maintained a Buy rating on the stock and has a HK$18.00 price target.
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Boris Van has given his Buy rating due to a combination of factors that highlight Kingdee International Software Group’s promising future. The introduction of Deepseek has significantly accelerated the development of AI within the ERP sector, offering a cost-effective and versatile model that enhances software companies’ capabilities and user adoption. This is expected to bring transformative changes to ERP products, automating numerous processes and providing valuable business insights.
Additionally, the financial prospects for Kingdee are strong, with anticipated revenue growth driven by faster cloud migration and AI upselling. The revenue TAM is projected to increase by RMB1.2 billion by 2029, boosting growth from 18% to 25%. This potential is reflected in the stock’s re-rating, which considers the new AI TAM and aligns with global software AI valuations. These factors, along with improved macroeconomic conditions expected in the second half of the year, support an upward revision in estimates and a raised target price of $18.
According to TipRanks, Van is an analyst with an average return of -6.6% and a 40.00% success rate.
In another report released on February 10, CLSA also maintained a Buy rating on the stock with a HK$13.70 price target.