On Wednesday, New Street Research adjusted its stance on Kanzhun Ltd. (NASDAQ:BZ), shifting from a Neutral to a Buy rating, and increased the price target to $25.00, up from the previous $17.00. This decision follows Kanzhun's fourth-quarter results for 2023, which surpassed both the consensus and New Street Research's own forecasts.
The analyst highlighted that the demand for online recruitment services is expected to continue its upward trajectory into the first quarter, partly fueled by a rebound in key accounts (KA). Additionally, there is an anticipation of improved year-over-year margins as Kanzhun maintains a disciplined approach to its spending.
The firm expressed confidence in the improving fiscal year 2024 outlook for Kanzhun, which has led to the revised price target. This new target suggests a 31.1 times forward price-to-earnings (P/E) ratio based on the company's projected earnings for FY24.
Kanzhun's strong quarterly performance and positive projections for the upcoming fiscal year have clearly resonated with New Street Research, resulting in a more favorable view of the company's stock prospects.
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