UBS has raised its rating for KE Holdings (BEKE, Financial), upgrading it from Neutral to Buy. The financial institution has also set a new price target of $23 for the stock. This shift in recommendation suggests increased confidence in BEKE's potential performance and growth prospects. Investors may view this upgrade as a positive indication of future value, aligning with UBS's outlook on the stock.
Wall Street Analysts Forecast
Based on the one-year price targets offered by 18 analysts, the average target price for KE Holdings Inc (BEKE, Financial) is $25.47 with a high estimate of $33.00 and a low estimate of $22.00. The average target implies an upside of 32.94% from the current price of $19.16. More detailed estimate data can be found on the KE Holdings Inc (BEKE) Forecast page.
Based on the consensus recommendation from 18 brokerage firms, KE Holdings Inc's (BEKE, Financial) average brokerage recommendation is currently 1.8, indicating "Outperform" status. The rating scale ranges from 1 to 5, where 1 signifies Strong Buy, and 5 denotes Sell.
Based on GuruFocus estimates, the estimated GF Value for KE Holdings Inc (BEKE, Financial) in one year is $23.92, suggesting a upside of 24.84% from the current price of $19.16. GF Value is GuruFocus' estimate of the fair value that the stock should be traded at. It is calculated based on the historical multiples the stock has traded at previously, as well as past business growth and the future estimates of the business' performance. More detailed data can be found on the KE Holdings Inc (BEKE) Summary page.
BEKE Key Business Developments
Release Date: May 15, 2025
- Total GTV: RMB844.2 billion, a 34% year-over-year increase.
- Net Revenue: RMB23.3 billion, up 42.4% year-over-year.
- Gross Margin: 28.7%, a decline of 4.5 percentage points year-over-year.
- GAAP Net Income: RMB855 million, a 97.9% year-over-year increase.
- Non-GAAP Net Income: RMB1.39 billion, stable year-over-year.
- In-Home Transaction Revenue: RMB6.9 billion, up 20% year-over-year.
- New Home Transaction GTV: RMB232.2 billion, up 53% year-over-year.
- New Home Transaction Revenue: RMB8.1 billion, up 64.2% year-over-year.
- Home Renovation and Furniture Revenue: RMB102.9 billion, up 22.3% year-over-year.
- Home Rental Services Revenue: RMB5.1 billion, up 3.8% year-over-year.
- Cash Liquidity: RMB74.3 billion.
- Share Repurchase: USD 139 million worth of shares repurchased in Q1.
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
- KE Holdings Inc (BEKE, Financial) reported a 34% year-over-year increase in total Gross Transaction Value (GTV) for the first quarter of 2025.
- Revenue rose by 42.4% year-over-year, reaching RMB23.3 billion, indicating strong financial performance.
- The number of active stores surpassed 55,200, a record high, with a significant increase in connected stores.
- The company achieved a 97.9% year-over-year increase in GAAP net income, demonstrating improved profitability.
- AI tools have been effectively integrated into operations, enhancing efficiency and service quality for agents and customers.
Negative Points
- GTV for the new home transaction business decreased by 53% year-over-year, indicating challenges in this segment.
- Gross margin declined by 4.5 percentage points year-over-year to 28.7%, reflecting increased costs or pricing pressures.
- The contribution margin from in-home transaction services dropped by 6.4 percentage points year-over-year.
- Revenue from emerging and other services decreased by 50% year-over-year, highlighting potential issues in diversification efforts.
- The company experienced a net operating cash outflow of RMB4 billion in Q1, which could impact liquidity.
