{"id":77490,"date":"2024-03-12T12:29:39","date_gmt":"2024-03-12T17:29:39","guid":{"rendered":"https:\/\/equitynewsreport.com\/morgan-stanley-holds-kanzhun-at-23-stock-target-on-strong-growth\/"},"modified":"2024-03-12T12:29:39","modified_gmt":"2024-03-12T17:29:39","slug":"morgan-stanley-holds-kanzhun-at-23-stock-target-on-strong-growth","status":"publish","type":"post","link":"https:\/\/equitynewsreport.com\/h\/morgan-stanley-holds-kanzhun-at-23-stock-target-on-strong-growth\/","title":{"rendered":"Morgan Stanley holds Kanzhun at $23 stock target on strong growth"},"content":{"rendered":"
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\n\u00a9 Reuters. <\/span>
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On Tuesday, Morgan Stanley maintained its Overweight rating on Kanzhun Ltd. (NASDAQ: BZ) with a steady stock price target of $23.00. The firm highlighted Kanzhun’s robust year-over-year revenue increase of 46% to Rmb1.58 billion, surpassing the Bloomberg consensus by 3%. The company’s cash billings also saw a 9% quarter-over-quarter rise, which was higher than the anticipated 3-5% range.<\/p>\n

Kanzhun has experienced a rebound in the job market supply\/demand ratio and in the demand for key account (KA)\/white-collar recruitment since the third quarter of 2023. The fourth quarter of 2023 saw paid enterprise users reach a record 5.2 million, and the total newly registered users in 2023 hit 49 million.<\/p>\n

Due to operating leverage, the non-GAAP operating profit was Rmb520 million, which is 14% higher than Morgan Stanley’s estimate, resulting in a non-GAAP operating margin of 32.9%. This represents a significant improvement from the negative 8.9% or approximately 20% when excluding World Cup investment in the fourth quarter of 2022.<\/p>\n

Kanzhun’s non-GAAP net profit reached Rmb629 million, 22% above the Bloomberg consensus, indicating a non-GAAP net margin of 39.8%, a substantial increase from 5.5% in the fourth quarter of 2022. Following the conclusion of its $150 million share buyback program, which was effective from March 2023 to March 2024, Kanzhun announced a new buyback initiative of $200 million, set to run from March 2024 to March 2025.<\/p>\n

The company’s recruitment demand for KA\/white-collar roles has been on a continuous upswing since the third quarter of 2023, while demand for small and medium-sized enterprise (SME)\/blue-collar jobs has remained resilient. Morgan Stanley recognizes Kanzhun’s dominant market position and innovative business model as key drivers for sustained long-term growth.<\/p>\n

The firm projects that Kanzhun could lead revenue and earnings growth among Chinese internet stocks covered in their analysis from 2024 to 2027. Despite a relatively high valuation, Morgan Stanley believes that a premium is warranted due to Kanzhun’s higher growth prospects and a more favorable competitive environment.<\/p>\n

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.<\/em><\/p>\n<\/div>\n","protected":false},"excerpt":{"rendered":"

\u00a9 Reuters. On Tuesday, Morgan Stanley maintained its Overweight rating on Kanzhun Ltd. (NASDAQ: BZ) with a steady stock price target of $23.00. The firm highlighted Kanzhun’s robust year-over-year revenue increase of 46% to Rmb1.58 billion, surpassing the Bloomberg consensus by 3%. The company’s cash billings also saw a 9% quarter-over-quarter rise, which was higher than the anticipated 3-5% range. Kanzhun has experienced a rebound in the job market supply\/demand ratio and in the demand for key account (KA)\/white-collar recruitment since the third quarter of 2023. The fourth quarter of 2023 saw paid enterprise users reach a record 5.2 million, […]<\/p>\n","protected":false},"author":5,"featured_media":77491,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[49,50,48,3],"tags":[],"_links":{"self":[{"href":"https:\/\/equitynewsreport.com\/h\/wp-json\/wp\/v2\/posts\/77490"}],"collection":[{"href":"https:\/\/equitynewsreport.com\/h\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/equitynewsreport.com\/h\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/equitynewsreport.com\/h\/wp-json\/wp\/v2\/users\/5"}],"replies":[{"embeddable":true,"href":"https:\/\/equitynewsreport.com\/h\/wp-json\/wp\/v2\/comments?post=77490"}],"version-history":[{"count":0,"href":"https:\/\/equitynewsreport.com\/h\/wp-json\/wp\/v2\/posts\/77490\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/equitynewsreport.com\/h\/wp-json\/wp\/v2\/media\/77491"}],"wp:attachment":[{"href":"https:\/\/equitynewsreport.com\/h\/wp-json\/wp\/v2\/media?parent=77490"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/equitynewsreport.com\/h\/wp-json\/wp\/v2\/categories?post=77490"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/equitynewsreport.com\/h\/wp-json\/wp\/v2\/tags?post=77490"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}