Benchmark Co. analyst Fawne Jiang maintained a Buy rating on Alibaba today and set a price target of $195.00.
Elevate Your Investing Strategy:
- Take advantage of TipRanks Premium at 50% off! Unlock powerful investing tools, advanced data, and expert analyst insights to help you invest with confidence.
Fawne Jiang has given his Buy rating due to a combination of factors that highlight Alibaba’s strengthening fundamentals and growth potential. Despite a recent earnings miss attributed to asset divestitures and increased investments in Quick Commerce, Alibaba’s cloud and e-commerce segments are showing signs of robust growth. The cloud division, in particular, has experienced a significant year-over-year revenue increase of 26%, with expectations for further acceleration, reinforcing Alibaba’s leadership in China’s cloud infrastructure and AI sectors.
Moreover, the strategic investment in Quick Commerce is seen as a catalyst for Alibaba’s core e-commerce growth. This initiative has resulted in a notable increase in daily active users and user engagement, which is expected to drive higher traffic and advertising revenue. The potential for Quick Commerce to expand Alibaba’s total addressable market and enhance its competitive positioning has led to an upward revision of growth forecasts for the coming years. These positive developments, along with the potential for market share gains and multiple expansion, have prompted an increase in the price target to $195.
Jiang covers the Consumer Cyclical sector, focusing on stocks such as Trip.com Group Sponsored ADR, JD, and Alibaba. According to TipRanks, Jiang has an average return of 17.8% and a 59.63% success rate on recommended stocks.
In another report released today, Mizuho Securities also maintained a Buy rating on the stock with a $159.00 price target.