Zhihu gains amid new long idea at Hedgeye, sees 70% upside
Maks_Lab/iStock via Getty Images


Zhihu Inc. (NYSE:ZH) rose 5.7% as it was named a new long idea at Hedgeye with fair value likely ~70% higher.
Zhihu "should start receiving more attention as a M&A target given the frenzy over ChatGPT," Hedgeye analyst Felix Wang wrote in a note on Monday.

Due to "ZH's giant moat in the knowledge sharing space," Chinese Internet giants including Tencent (OTCPK:TCEHY), Alibaba (BABA), Kuaishou (OTCPK:KUASF), Baidu (BIDU), JD (JD) and others are all investors in ZH, Wang wrote. "However, acquiring ZH at this time is not an easy decision. ZH is in a mess - the company is struggling with user, monetization & community image issues."
"If there is an opportunity to scoop up ZH at an attractive valuation, it's now," Wang added. " Given the ChatGPT opportunity, it deserves a re-rating - I will argue that fair value is ~70% high."
Last month, Zhihu (ZH) appointed Henry Dachuan Sha as CFO.