JPMorgan Initiates Coverage on Kanzhun Ltd
JPMorgan has begun coverage of Kanzhun Ltd (NASDAQ:BZ) assigning an overweight recommendation and a price target of $20.00 per share. Analyst Daniel Chen highlighted that the company's American Depositary Receipt (ADR) price has declined 47% from its September 2025 peak, while the broader KWEB index fell 38% over the same timeframe.
The firm noted that the 12‑month forward price‑to‑earnings (P/E) multiple has been cut from 21‑times to 10‑times, reflecting concerns about the impact of artificial intelligence on the recruitment market and on Kanzhun itself. Despite this, the stock currently trades at a trailing P/E of 13.3‑times, with a low price‑to‑earnings‑growth (PEG) ratio of 0.16, and is positioned just above its 52‑week low of $12.57.
JPMorgan argued that worries about AI displacing workers and AI agents bypassing Kanzhun are overstated. The bank expects AI to become a major driver of higher long‑term average revenue per user, enabling a performance‑based recruitment service that could command a premium fee of approximately 1,000 yuan per successful hire. Kanzhun maintains an impressive gross profit margin of 85%, supporting the view that the stock is undervalued.
In parallel, Kanzhun disclosed a share‑repurchase program in which it bought back 777,884 ordinary shares for roughly RMB34 million. This transaction brings the company's total share repurchases for 2026 to more than RMB1.99 billion. Additionally, Bernstein SocGen Group upgraded Kanzhun’s rating to Outperform from Market Perform and raised its price target to $18.00 from $16.50, citing the company’s strong foothold in blue‑collar sectors such as logistics, manufacturing, semiconductors and AI‑related jobs.
The article also mentions that InvestingPro analysis provides nine additional ProTips to subscribers, reinforcing the perception of the stock’s undervaluation.