Key Takeaways:
Morgan Stanley initiated coverage on MINIMAX-W (00100.HK) with an “Overweight” rating, setting a price target of HKD 990 that implies significant upside from its current levels.
"The market is underestimating the company's annual recurring revenue growth potential," the bank's report stated, citing strong performance in large language model applications for coding and AI agents.
The analysis forecasts a compound annual growth rate of 152 percent for Minimax's revenue between 2026 and 2028. Morgan Stanley's valuation is based on a 56 times price-to-sales ratio for the year 2027. The firm also noted robust technical metrics, including weekly growth in tokens per minute of 10 to 20 percent, and broad prospects for multimodal commercialization.
The bullish rating provides a stark contrast to the stock's recent performance. In the previous session, Minimax shares fell 1.4 percent, even as the broader Hang Seng Index added 126 points. The call suggests a strong conviction in the company's long-term AI strategy, looking past short-term market volatility.
The rating establishes a new high-water mark for valuation in the AI sector, a space with mixed recent performance. While some chip-related AI stocks have climbed, other AI application firms have seen declines. Investors will watch the company's next quarterly results to see if revenue growth aligns with the bank's optimistic projections.
This article is for informational purposes only and does not constitute investment advice.
