BofA Securities has reaffirmed a neutral rating on Kanzhun Ltd. with a $19 price target, citing the company’s monetization strategy as a primary catalyst for medium-term growth. The target is based on 14 times estimated 2027 non-GAAP earnings per share, reflecting confidence in the job recruitment platform’s pricing adjustments and operational efficiency.
Morgan Stanley, in contrast, maintained an overweight rating with a $24 price target, emphasizing long-term revenue expansion driven by higher average revenue per paying user expected from the second half of 2026. The divergence underscores differing assessments of Kanzhun’s capacity to balance pricing power with user retention.
Kanzhun’s financial performance for the second quarter showed revenue growth of 14% year-over-year to RMB 2.4 billion, while adjusted operating income rose 19% with a record margin of 43.8%. Adjusted net income increased 9%, excluding investment gains. Guidance for the third quarter of 2026 anticipates revenue growth of 11.4% to 15.6% year-over-year, in line with consensus estimates of 14%.
The company’s monetization efforts are split between mature and lower-tier markets. In Tier 1 and Tier 2 cities, Kanzhun is gradually raising prices, citing current levels as "extremely low with room for increases." Management has initiated price hikes at a measured pace to assess customer response. In lower-tier cities, the focus remains on customer acquisition rather than pricing adjustments.
Kanzhun’s valuation metrics include a P/E ratio of 13.34 and a notably low PEG ratio of 0.18, alongside gross profit margins of 85%. InvestingPro assigns the stock a financial health score of 3.74, categorized as "great." BofA’s neutral stance acknowledges risks from macroeconomic conditions and artificial intelligence while highlighting potential upside from monetization and shareholder returns.
