Update shared on27 Aug 2025
Fair value Decreased 1.41%Analysts have lowered their price target for KE Holdings to $23.21, citing persistent weakness in China’s property market, deteriorating industry trends, and a lack of supportive policy actions, which have led to reduced forecasts for home transaction volumes and revenue.
Analyst Commentary
- Softer industry trends observed in both existing and new home sales since June, leading to reduced revenue and GTV estimates.
- Persistent weakness and further deterioration in China’s property market since spring, as confirmed by recent channel checks.
- Absence of new government rescue or stimulus policies to support the Chinese real estate sector in 2025.
- Lowered near-term and future estimates for company performance, with quarter-over-quarter declines of 10%-15% in home transaction volumes forecasted.
- Ongoing concerns over macroeconomic headwinds and sector sentiment affecting business outlook.
What's in the News
- Completed repurchase of 156,083,457 shares (13.17%) for $2,019.39 million under existing buyback program.
- Recently repurchased 39,437,693 shares (3.39%) for $254.58 million between April and June.
- Increased equity buyback authorization by $2,000 million, raising total to $5,000 million, and extended plan to August 31, 2028.
- Scheduled board meeting to review and approve unaudited financial results for the three and six months ended June 30, 2025.
Valuation Changes
Summary of Valuation Changes for KE Holdings
- The Consensus Analyst Price Target remained effectively unchanged, moving only marginally from $23.54 to $23.21.
- The Future P/E for KE Holdings has significantly fallen from 29.89x to 3.86x.
- The Consensus Revenue Growth forecasts for KE Holdings has fallen slightly from 10.5% per annum to 10.1% per annum.
Disclaimer
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