BofA upgrades KE Holdings to Buy on China policy pivot

BofA analyst Miranda Zhuang upgraded KE Holdings (BEKE) to Buy from Neutral with a price target of $28, up from $24. KE is the “clear market leader” in property brokerage in China, and a key beneficiary of the recent China policy pivot and potential cyclical recovery, the analyst tells investors in a research note. The firm expects the company to outgrow the housing market during this recovery and also in the long term, citing its high exposure to the better segment within the housing market, existing homes. BofA adds that KE is gaining share in the existing and new home sales market.