Citi analyst Griffin Chan reiterated a Buy rating and a $26.40 price target on Beike (NYSE: BEKE), according to a press release statement.

Chan launched a 30-day positive catalyst watch on the stock, citing expectations for strong second-quarter 2026 earnings with upside to a net profit estimate of Rmb2.3 billion, representing a 26% year-over-year increase at a 9.2% net profit margin.

The analyst also noted that gross transaction value is likely to beat estimates in the second quarter, projecting growth of 8% year-over-year compared to a prior estimate of 2%, supported by secondary transaction volume and operating leverage.

Chan added that positive third-quarter guidance is expected, pointing to accelerating transaction volume growth in core cities. Data cited includes secondary volume across 18 cities rising 11% year-over-year and primary volume across 34 cities rising 18% year-over-year in the first two weeks of July, based on figures from WIND and CREIS respectively.

The analyst noted that Beike shares trade at 18 times estimated 2026 earnings, with total shareholder return above 5% and positive cash flow cited as valuation support.

Shares of Beike closed at $17.03 prior to the announcement.