CMB International Securities analyst Saiyi He maintained a Buy rating on Alibaba on July 7 and set a price target of $155.50.
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Saiyi He has given his Buy rating due to a combination of factors that highlight Alibaba’s strategic financial maneuvers and growth prospects. The company announced the issuance of exchangeable bonds linked to Alibaba Health, which is expected to generate significant capital for Alibaba’s international expansion, particularly in cloud infrastructure and digital commerce. This move is seen as a strategic step to bolster Alibaba’s overseas operations and enhance its financial flexibility.
Furthermore, the bonds offer a premium exchange price over the current market value of Alibaba Health shares, indicating strong investor confidence and potential for future gains. Alibaba’s substantial cash reserves and investments further support its capacity for growth and development. Saiyi He maintains a positive outlook on Alibaba’s long-term strategy, expecting the company to leverage its resources effectively to drive transformation in the “AI + Healthcare” sector, thus justifying the Buy rating.
In another report released on July 3, Citi also maintained a Buy rating on the stock with a $169.00 price target.