ZH - Zhihu gains amid new long idea at Hedgeye sees 70% upside

• Zhihu Inc. ( NYSE: ZH ) rose 5.7% as it was named a new long idea at Hedgeye with fair value likely ~70% higher.
• Zhuhi "should start receiving more attention as a M&A target given the frenzy over ChatGPT," Hedgeye analyst Felix Wang wrote in a note on Monday.
• Due to "ZH's giant moat in the knowledge sharing space," Chinese Internet giants including Tencent ( OTCPK:TCEHY ) Alibaba ( BABA ), Kuaishou ( OTCPK:KUASF ) Baidu (BIDU,) JD ( JD ) and others are all investors in ZH, Wang wrote. "However, acquiring ZH at this time is not an easy decision. ZH is in a mess - the company is struggling with user, monetization & community image issues."
• "If there is an opportunity to scoop up ZH at an attractive valuation, it's now," Wang added. " Given the ChatGPT opportunity, it deserves a re-rating - I will argue that fair value is ~70% high."
• Last month Zhihu ( ZH ) appointed Henry Dachuan Sha as CFO.

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