Citi thinks Zhihu “deserves some attention amid the sector re-rating sentiment.” Following the company target to reach breakeven target in Q4 through various measures to improve efficiency, Citi expects a potentially better than expected Q3 on loss-narrowing progress, the analyst tells investors in a research note. The firm says Zhihu has two shareholder return programs as well as one tender offer to buy back up to $54.8M shares, all of which in aggregate could represent 26% of shares if all executed. The firm sees a “rerating opportunity” in the stock and keeps a Buy rating on Zhihu with a $5.40 price target.

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