BEKE - KE Holdings stock slides 6% even after upgrade to Buy at UBS
KE Holdings (NYSE:BEKE) shares Monday afternoon are dipping more than 6% even as UBS analyst John Lam upgraded the China-based real estate platform to Buy from Neutral. Lam lifted his price target on BEKE to $22.50 per share from $18.60, implying 60% upside from last Thursday's close, according to a note written to clients. Meanwhile, the stock is off a whopping 73% Y/Y. Seeking Alpha's Quant Rating had warned that BEKE is at high risk of performing badly due to decelerating momentum and inferior profitability when compared with peers. Sees 2022 estimate for secondary market gross transaction value of -11% Y/Y, an improvement from -20%, primarily due to a more positive expectation on the pace of recovery, the note said, citing better agent retention and operational releveraging. "We think the market is now aware of Beike's cyclical nature, and has priced in multiple risks from property (eg. developers' credit risks) and internet sectors
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KE Holdings stock slides 6% even after upgrade to Buy at UBS