BEKE - Ke Holdings gets Outperform rating at Credit Suisse on deep moat fast growth
Credit Suisse analyst Ashley Xu initiates coverage of Ke Holdings ([[BEKE]] -6.0%), also known as Belke, with an Outperform rating due to its massive addressable market in the home transaction market, deep moat with its Agent Cooperation Network and faster growth outlook.Expects Belke, China's largest online/offline platform for housing transactions and service to increase brokerage penetration to 61% of total home transaction value in 2024 from 47% in 2020."By our estimate, brokerage service would cover RMB 19T ($2.9T) in gross transaction value in 2024, implying a 13.4% CAGR," Xu writes in a note to clients.Forecasts revenue to reach RMB 136B (~$21B) in 2023, implying 24% 2020-2023 CAGR.Xu's rating is more bullish than the Neutral Quant rating and aligns with the average Wall Street analyst rating of Bullish (4 Very Bullish, 3 Bullish, 3 Neutral).Last month, Bank of America Securities upgraded BEKE to Buy from Neutral on its Q4 beat and Q1
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Ke Holdings gets Outperform rating at Credit Suisse on deep moat, fast growth