Bank of America Securities analyst Joyce Ju has reiterated their bullish stance on BABA stock, giving a Buy rating yesterday.
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Joyce Ju has given her Buy rating due to a combination of factors related to Alibaba’s strategic initiatives and growth prospects. The company has shown strong commitment to expanding its food and on-demand delivery services, which has significantly increased order volumes and consumer engagement. Despite the short-term financial impact of these investments, such as estimated losses exceeding RMB10 billion in the June quarter, Alibaba’s aggressive promotions and substantial investment plans are expected to drive long-term growth in consumer mindshare and service capabilities.
Additionally, Alibaba’s core commerce and Cloud/AI segments are on track for growth, with expected revenue increases driven by higher consumer management revenue and robust AI demand. Although there are short-term disruptions in earnings due to deconsolidation effects, the healthy momentum in core commerce, the secular growth theme in AI, and potential market share gains in the food/on-demand delivery sector support the Buy rating. The price objective is set at $135, reflecting these growth opportunities and potential upside catalysts.
According to TipRanks, Ju is a 4-star analyst with an average return of 7.4% and a 51.90% success rate. Ju covers the Consumer Cyclical sector, focusing on stocks such as JD, Alibaba, and PDD Holdings.
In another report released yesterday, Macquarie also maintained a Buy rating on the stock with a $139.00 price target.