Kingsoft Cloud (KC) PT Lowered to $16 at Jefferies

Jefferies analyst Thomas Chong lowered the price target on Kingsoft Cloud (NASDAQ: KC) to $16.00 (from $18.00) while maintaining a Buy rating.

The analyst comments "KC reported 1Q results with revenue and adjusted EBITDA came in below consensus mainly due to seasonality and timing of delivery. Management highlights solid AI demand with the pursuit of different business models. We expect leasing leads to lower GPM but relies less on using own cash. We adjust full year revenue and margin estimates factoring in the latest trends post 1Q results. High quality and sustainable growth model is intact. Maintain Buy."

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