BofA reiterates Kanzhun stock rating on monetization strategy

BofA Securities maintains a Neutral rating and sets a $19.00 price target for Kanzhun Ltd. (NASDAQ:BZ) shares. The stock trades at a P/E ratio of 13.34, with an even lower PEG ratio of 0.18, suggesting the stock is undervalued. Kanzhun's third-quarter 2026 revenue is projected to grow 11.4% to 15.6% year-over-year, matching consensus expectations of 14% growth.

Adjusted operating margins are expected to stay steady. Kanzhun is focusing on monetization strategies in both mature markets (tier 1 and 2 cities) and lower-tier cities. In mature markets, the company aims to boost customer spending by raising the paying ratio and effective price per mutual-match. In lower-tier cities, Kanzhun will continue its existing strategy of prioritizing customer growth over pricing.

The price hike strategy is anticipated to bolster medium-term growth and profitability. Kanzhun boasts impressive gross profit margins of 85% and a strong financial health score of 3.74. The Neutral rating factors in risks from macroeconomic conditions and artificial intelligence, while also highlighting potential upside from monetization and shareholder returns.

BofA Securities' 2026-2028 earnings per share estimates remain unchanged. Kanzhun reported a 14% increase in second-quarter revenue to RMB 2.4 billion, with a 19% rise in adjusted operating income and a record 43.8% margin. Morgan Stanley also reiterated its Overweight rating on Kanzhun, targeting a price of $24.00, citing long-term revenue growth driven by increased revenue per paying user starting in the second half of 2026.