Goldman Sachs Backs MiniMax with Buy Rating and HK$860 Target
On July 3, Goldman Sachs issued a research report reaffirming its 'Buy' rating on MiniMax Group and setting a target price of HK$860. The report centers on MiniMax's demonstrated ability to balance performance and cost in its latest generation of AI models, a crucial factor as the industry shifts toward commercialization.
Efficiency Leap: M3 Model Delivers More for the Same Price
The report provides a detailed analysis of MiniMax's newly launched M3 model. A key highlight is that despite doubling the parameter count compared to its predecessor M2.7, the company achieved over a 2x improvement in inference efficiency through comprehensive upgrades to its training and inference architecture. According to Goldman Sachs analysts, this efficiency gain fully offsets the potential cost increase from the larger model size, allowing M3 to be priced the same as M2.7. This establishes a notable value-for-money advantage in the competitive landscape.
Market Context: Rival Moves Highlight MiniMax's Value Proposition
The report places MiniMax's strategy in a broader market context. It notes that another major AI firm, DeepSeek, recently announced plans to launch its V4 official version in mid-July, accompanied by a time-of-day pricing model that doubles rates during peak hours. Goldman Sachs views this move as significant. It indirectly validates the real cost pressures associated with operating leading large AI models. In this light, MiniMax's ability to launch a model with doubled parameters without a price increase underscores its superior technical optimization and cost management. This differentiated pricing approach could be a key factor in attracting enterprise clients.
Future Catalysts: Larger Models and Video Generation on the Horizon
Looking beyond the current M3, the report highlights MiniMax's product roadmap. The upcoming, larger versions within the M3 series and the video generation-focused H3 model are identified as core catalysts for the company's next growth phase. These releases are expected to expand MiniMax's capabilities in text, multimodal, and video content generation, potentially unlocking new applications and revenue streams. The market anticipates these technological advancements translating into stronger commercial outcomes.
In summary, Goldman Sachs portrays MiniMax as a company that has found a more optimal solution to the critical "performance-versus-cost" equation through solid technical optimization. As the industry gradually pivots from pure technological exploration to commercial implementation, this capability may hold greater long-term value than mere parameter count competition.