Morgan Stanley Starts Kingsoft Cloud at Overweight With $15 Target as AI Shift Implies 64% Upside
Updated
Updated · CNBC · Jul 7
Morgan Stanley Starts Kingsoft Cloud at Overweight With $15 Target as AI Shift Implies 64% Upside
3 articles · Updated · CNBC · Jul 7
Summary
$15 is Morgan Stanley’s new target for Kingsoft Cloud, and the bank started coverage at overweight, sending the shares up 3% premarket.
Morgan Stanley tied the call to Kingsoft Cloud’s pivot from a mid-tier commodity cloud provider to AI cloud, citing rapidly accelerating AI revenue, improving profitability and support from Xiaomi and Kingsoft Group.
The bank also said Kingsoft Cloud has shown pricing power despite a global chip shortage and should benefit from supplying core infrastructure to Xiaomi’s AI ecosystem and smart-home platforms.
Kingsoft Cloud shares are still down nearly 12% this year, but Morgan Stanley’s view matches broader Wall Street sentiment: all 11 analysts tracked by LSEG rate the stock buy or strong buy.