Earnings Update: Here's Why Analysts Just Lifted Their Kanzhun Limited (NASDAQ:BZ) Price Target To US$20.12

Investors in Kanzhun Limited (NASDAQ:BZ) had a good week, as its shares rose 8.8% to close at US$18.86 following the release of its annual results. It was a credible result overall, with revenues of CN¥7.4b and statutory earnings per share of CN¥3.49 both in line with analyst estimates, showing that Kanzhun is executing in line with expectations. Following the result, the analysts have updated their earnings model, and it would be good to know whether they think there's been a strong change in the company's prospects, or if it's business as usual. We've gathered the most recent statutory forecasts to see whether the analysts have changed their earnings models, following these results.

See our latest analysis for Kanzhun

After the latest results, the 18 analysts covering Kanzhun are now predicting revenues of CN¥8.30b in 2025. If met, this would reflect a decent 13% improvement in revenue compared to the last 12 months. Per-share earnings are expected to soar 33% to CN¥4.84. In the lead-up to this report, the analysts had been modelling revenues of CN¥8.29b and earnings per share (EPS) of CN¥4.79 in 2025. The consensus analysts don't seem to have seen anything in these results that would have changed their view on the business, given there's been no major change to their estimates.

With the analysts reconfirming their revenue and earnings forecasts, it's surprising to see that the price target rose 17% to US$20.12. It looks as though they previously had some doubts over whether the business would live up to their expectations. The consensus price target is just an average of individual analyst targets, so - it could be handy to see how wide the range of underlying estimates is. Currently, the most bullish analyst values Kanzhun at US$22.66 per share, while the most bearish prices it at US$13.97. Still, with such a tight range of estimates, it suggeststhe analysts have a pretty good idea of what they think the company is worth.

Taking a look at the bigger picture now, one of the ways we can understand these forecasts is to see how they compare to both past performance and industry growth estimates. It's pretty clear that there is an expectation that Kanzhun's revenue growth will slow down substantially, with revenues to the end of 2025 expected to display 13% growth on an annualised basis. This is compared to a historical growth rate of 26% over the past five years. Juxtapose this against the other companies in the industry with analyst coverage, which are forecast to grow their revenues (in aggregate) 10% annually. So it's pretty clear that, while Kanzhun's revenue growth is expected to slow, it's expected to grow roughly in line with the industry.

The Bottom Line

The most obvious conclusion is that there's been no major change in the business' prospects in recent times, with the analysts holding their earnings forecasts steady, in line with previous estimates. They also reconfirmed their revenue estimates, with the company predicted to grow at about the same rate as the wider industry. There was also a nice increase in the price target, with the analysts clearly feeling that the intrinsic value of the business is improving.

Keeping that in mind, we still think that the longer term trajectory of the business is much more important for investors to consider. We have estimates - from multiple Kanzhun analysts - going out to 2027, and you can see them free on our platform here.

We also provide an overview of the Kanzhun Board and CEO remuneration and length of tenure at the company, and whether insiders have been buying the stock, here.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.