Morgan Stanley published a report stating that KINGSOFT's (03888.HK) Gaming Business performs strongly, and the newly established partnership between Kingsoft Cloud and Xiaomi brings considerable upside potential for market expectations regarding KINGSOFT. The firm reiterated its "Shareholding" rating for KINGSOFT and raised the Target Price from 36 yuan to 41 yuan.

Morgan Stanley indicated that Gaming and Cloud jointly drive earnings forecasts, and raised KINGSOFT's earnings per share forecasts for 2025 and 2026 by 6%, which are respectively 16% and 18% higher than market expectations, considering the current PE forecast of 17 times for 2025 is attractive.