Jefferies lowers its target price for Zhipu to HKD 1183.79, maintaining its holding rating

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Jefferies has lowered its target price for Zhipu from HKD 1299.8 to HKD 1183.79, maintaining its holding rating. Jeffrey believes that Zhipu's annual recurring revenue guidance of $2.4 billion by the end of 2026 exceeds expectations, but has doubts about its sustainability. Jeffray has raised its revenue forecast for Zhipu from 2026 to 2029 by 37% to 119%, and lowered its net loss forecast by 14% to 21%. Jeffery reduced the valuation multiple of the cloud segment from 50 times to 30 times, and is optimistic about Alibaba (09988. HK) and ByteDance.

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