JPMorgan raises Zhipu target 29% to HK$1,800 on GLM-5.2 strength

JPMorgan raised its price target on Zhipu by 29% to HK$1,800, citing the Chinese AI company's GLM-5.2 model for higher revenue forecasts.

"GLM-5.2's improved capabilities and pricing power support a stronger revenue trajectory," JPMorgan said in a June 22 research report.

The bank reiterated its Overweight rating on Zhipu (02513.HK). The new target of HK$1,800 is based on 30 times estimated 2030 earnings, discounted to present value, up from the previous target of HK$1,400. The 29% increase reflects higher revenue projections tied to the upgraded model.

The upgrade comes as Chinese AI developers narrow the performance gap with US rivals. Zhipu's GLM-5.2, an open-source model released this year, has drawn attention from Silicon Valley for its competitive capabilities against frontier systems from OpenAI and Google. The model's improved performance allows Zhipu to command stronger pricing, according to JPMorgan.

Zhipu listed on the Hong Kong Stock Exchange in January 2026, with Chairman Liu Debing ringing the opening bell. The company competes with a growing field of Chinese AI developers including DeepSeek, Baidu and Alibaba, all racing to build models that can match US leaders. DeepSeek's R1 model, released in January 2025, erased $1 trillion from US capital markets in a single day and demonstrated that Chinese AI could compete at the frontier.

The open-source segment has become a key battleground. Chinese developers have released several competitive models this year, narrowing what was once a wide gap with American labs. GLM-5.2 is among the latest entries, and its reception in both China and abroad will test whether open-source Chinese AI can gain traction with global developers.

The 29% target increase signals that JPMorgan sees accelerating revenue momentum from GLM-5.2. Investors will watch for Zhipu's next earnings report for evidence of pricing power and margin expansion.

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