BofA starts Knowledge Atlas at buy with HKD1,250 target on AI growth

Bank of America Securities initiated coverage on Knowledge Atlas at buy with a HKD1,250 price target, sending the stock up 28%.

"Knowledge Atlas is well positioned to maintain its leading status in China's large-model space, supported by the data flywheel effect of its coding capabilities," the BofA analysts said.

The brokerage forecasts revenue will surge to RMB20 billion by 2028 from RMB724 million in 2025, driven by cloud deployments and API consumption. Cloud revenue alone is expected to climb to RMB17 billion from RMB190 million over the same period as token usage expands and the business shifts toward a recurring monetization model.

The stock surged 27.985% on June 12, with short selling reaching $180.54 million, or 6.5% of turnover. Key catalysts include the lock-up expiry of IPO cornerstone investors on July 7, new model upgrades from the second half of 2026 through the first half of 2027, and a potential A-share listing between the second half of 2026 and 2027.

The BofA analysts highlighted the company's strong academic research and development background from Tsinghua University and a high concentration of top-tier research talent. Its GLM model family and CodeGeeX coding products have demonstrated strong model capabilities and early commercial appeal through enterprise-level deployments and cloud-based API services, they said.

China Merchants Bank International also initiated coverage with a buy rating and a HKD1,503.9 target price. JPMorgan raised its target to HKD1,400 while downgrading peer Minimax-W to neutral with a HKD400 target, signaling market share consolidation around leading AI players.

The initiation by a bulge-bracket bank adds institutional credibility to Knowledge Atlas' growth narrative at a time when China's AI sector is consolidating around top-tier players. Investors will watch the July 7 lock-up expiry for potential share overhang and the company's path toward a potential dual listing in Shanghai or Shenzhen.

This article is for informational purposes only and does not constitute investment advice.