UPDATE: JPMorgan Upgrades KE Holdings (BEKE) to Neutral

JPMorgan analyst Alex Yao upgraded KE Holdings (NYSE: BEKE) from Underweight to Neutral with a price target of $13.50 (from $7.50).

The analyst comments "We upgrade Beike from UW to N on improving sector sentiment due to more clarity of ADR risks and as policy easing of the housing market gathers steam. However, we believe a rebound in Beike’s GTV that is concentrated in 2H22 has been largely priced in, in relation to our house view, whereas COVID-19 presents renewed risks on the timing of a new home market recovery. At this juncture, we see limited upside risks to our 2022E revenue estimates. Upside risks on Beike include stronger-than-expected housing recovery due to policy loosening and better-than-expected OP margin due either to cost optimization or lower-than-expected loss from the new home renovating/furnishing business; downside risks include protracted lockdown measures dampening real estate market recovery and worse-than-expected provision required for distressed developers."

For an analyst ratings summary and ratings history on KE Holdings click here. For more ratings news on KE Holdings click here.

Shares of KE Holdings closed at $12.53 yesterday.

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