Here’s Why Goldman Sachs Upgraded Joint Stock Company Kaspi.kz (KSPI) to Buy

Core Viewpoint - Joint Stock Company Kaspi.kz (NASDAQ:KSPI) is considered one of the most profitable software stocks, with a recent upgrade to Buy from Neutral by Goldman Sachs, despite a price target reduction to $107 from $114, indicating a potential upside of nearly 42% from the current price [1][2]. Group 1: Company Performance - Kaspi.kz has experienced significant challenges this year, particularly due to regulatory costs affecting its Marketplace and banking operations, alongside a prolonged period of high interest rates [2]. - The stock has declined by 25% over the past twelve months, leading analysts to believe it is trading at a "significant discount" compared to its three-year forward earnings multiple average [2]. Group 2: Market Sentiment and Future Outlook - The upcoming third-quarter earnings call scheduled for November 10, 2025, is anticipated to provide deeper insights into the company's performance [3]. - Market sentiment appears favorable, with a one-year price target from Yahoo Finance suggesting a potential gain of 48% [3]. Group 3: Company Overview - Kaspi.kz, headquartered in Almaty, Kazakhstan, offers payments, marketplace, and fintech solutions for consumers and merchants, aiming to enhance lives through innovative products [4].