MiniMax's Shares Have Room to Catch Up to Zhipu AI — Market Talk

MiniMax's shares have room to catch up with peer Zhipu AI, which is currently trading over three times MiniMax's share price, BofA Securities analysts say in a research note. Between the two, Zhipu's premium reflects faster annual recurring revenue, stronger talent density and its lead in enterprise revenue exposure, BofA says. However, the earnings-per-share difference between the two appears too wide at this stage, they say. "We see scope for a MiniMax catch-up trade post lock-up expiry (Jul 8), supported by potential Southbound inclusion (early Aug) & enterprise revenue catch-up post M3 [model] launch," they say. BofA has a buy rating on both Zhipu and MiniMax. Zhipu's shares are last at HK$1,404.00, while MiniMax is at HK$388.60. (tracy.qu@wsj.com)