Update shared on 23 Nov 2025
Fair value Decreased 9.68%KE Holdings' analyst price target has been reduced from $24.50 to $22. This change reflects analysts' expectations of softer industry trends and revised revenue estimates following the latest quarterly results.
Analyst Commentary
Following KE Holdings' latest quarterly results and forward-looking guidance, analysts have provided a range of perspectives on the company's outlook. Their commentary reflects both confidence in certain aspects of the business, as well as caution regarding industry headwinds and near-term growth challenges.
Bullish Takeaways
- Bullish analysts maintain a positive long-term outlook on KE Holdings due to its strong market presence and leadership in the real estate sector.
- Continued investment in new home sales and platform development is seen as a potential driver for future growth.
- The company’s ability to adapt its strategy in response to changing industry trends underscores its focus on long-term execution and value creation.
- Despite the revised price target, the overall rating for the stock remains favorable. This reflects confidence in the company’s operational resilience.
Bearish Takeaways
- Bearish analysts express concern over signs of softening industry trends, particularly in existing and new home sales since June.
- Management's lowered revenue and gross transaction value (GTV) estimates for the coming quarter contribute to near-term caution on growth prospects.
- Increased macroeconomic uncertainty has led to more conservative forecasts for KE Holdings' upcoming performance.
- The reduction in the price target is largely tied to the expectation of slower revenue recovery and ongoing sector challenges.
What's in the News
- KE Holdings and lead plaintiffs have reached a proposed $4.95 million settlement in an ongoing securities class action, with a court hearing scheduled for February 27, 2026 (Lawsuits & Legal Issues).
- Between July and September 2025, KE Holdings completed the repurchase of 279,316,543 shares for $281.11 million. This concluded a total of 435,400,000 shares repurchased under the ongoing buyback plan (Buyback Tranche Update).
- The company reported $11.87 million in impairment charges related to goodwill, intangible assets, and other long-lived assets for the quarter ended September 2025 (Impairments/Write Offs).
- Linkhome AI entered a strategic partnership with KE Holdings' Realsee Technology to advance AI-driven 3D virtual tours and property visualization for real estate applications (Strategic Alliances).
- KE Holdings increased its equity buyback authorization by $2 billion, bringing the total to $5 billion. The company also extended the plan's duration to August 2028 (Buyback, Change in Plan Terms).
Valuation Changes
- Fair Value: Lowered from $22.55 to $20.37. This reflects more conservative expectations for the company's future performance.
- Discount Rate: Increased slightly from 9.61% to 9.78%. This indicates greater perceived risk in cash flow projections.
- Revenue Growth: Reduced significantly from 9.34% to 3.71%. This signals weaker anticipated top-line expansion.
- Net Profit Margin: Marginally decreased from 6.27% to 6.08%. This points to slightly lower expected profitability.
- Future P/E Ratio: Declined from 27.72x to 26.47x. This suggests a modest downward revision in valuation multiples.
Disclaimer
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