BEKE - KE Holdings upgraded to Buy at BofA on strong guidance expansion potential

BofA Securities analyst Miranda Zhuang upgrades KE Holdings (BEKE), which operates a housing platform in China, to Buy from Neutral on its Q4 beat and Q1 guidance.Sees BEKE's competitive edges supporting market share expansion and pricing upside expectations despite pressure from competition.Sees impact of housing market tightening manageable because the impact is limited to a couple of over-heated cities while the nationwide market continues to see solid demand, Zhuang writes; also BEKE's geographically diversified exposure and its market share potential are seen mitigating risk.Zhuang raises FY21/22 topline estimate by 6% and non-GAAP profit estimates by 9% for FY21 and 4% for FY22.Lifts price target to $76 from $65.SA contributor Vivalo Equity Research also sees potential for BEKE to achieve a 30% market share by 2023.

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KE Holdings upgraded to Buy at BofA on strong guidance, expansion potential