Alicia Yap, an analyst from Citi, maintained the Buy rating on Alibaba. The associated price target is $169.00.
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Alicia Yap’s rating is based on a combination of factors that highlight Alibaba’s strategic initiatives and market position. The company has announced significant subsidies through Taobao Shangou, which are aimed at enhancing consumer and merchant engagement. This move is seen as a positive step, as the initial results have shown a substantial increase in order volume, indicating effective cross-promotion strategies.
Furthermore, Alibaba’s decision to integrate Eleme and Fliggy into its China Retail business underscores the importance of on-demand delivery and travel services in its growth strategy. Additionally, Alibaba’s AliCloud maintains a dominant position in the China AI IaaS market, capturing a significant market share. These strategic moves, along with the expected share price return of 48.3%, support the Buy rating given by Alicia Yap.
According to TipRanks, Yap is a 3-star analyst with an average return of 2.1% and a 41.91% success rate. Yap covers the Consumer Cyclical sector, focusing on stocks such as Alibaba, JD, and PDD Holdings.
In another report released on June 30, Jefferies also maintained a Buy rating on the stock with a $153.00 price target.