- China Renaissance analyst Yiwen Zhang initiated coverage of Zhihu Inc (NYSE:ZH) with a Buy rating and $13 price target, implying a 31% upside.
- Zhihu is China’s “largest Q&A-oriented content community, with comprehensive content offerings,” Zhang notes.
- Zhang says “rapid” user growth, a “sound” monetization model, and opportunities with strategic shareholders underpin an “attractive outlook” and should drive profitability by 2023.
- Zhihu beat the Q2 consensus posting a 144% revenue growth, and issued a Q3 outlook above consensus. Average monthly active users (MAUs) grew 46.2% Y/Y to 94.3 million. Average monthly paying members rose 121.1% Y/Y to 4.7 million.
- Price Action: ZH shares closed higher by 1.85% at $9.93 on Tuesday.
© 2021 Benzinga.com. Benzinga does not provide investment advice. All rights