Benchmark Co. analyst Fawne Jiang maintained a Buy rating on Alibaba today and set a price target of $195.00.
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Fawne Jiang has given his Buy rating due to a combination of factors including Alibaba’s solid revenue growth and strategic investments. The company’s revenue for the quarter reached RMB 248 billion, marking a 5% increase year-over-year and surpassing market expectations by approximately RMB 3 billion. Despite a slight miss in adjusted EBITDA, primarily due to investments in quick commerce, the growth in Alibaba’s core segments like China E-commerce and Cloud services was noteworthy.
Jiang also noted the impressive 16% year-over-year growth in Alibaba China E-commerce Group and a 34% increase in Cloud services, both exceeding expectations. Although there was a decline in EBITA for the China E-commerce Group due to increased investments, these investments are seen as strategic for long-term growth. The company’s focus on expanding its cloud infrastructure and quick commerce capabilities suggests a forward-looking approach that could yield significant returns, justifying the Buy rating.
In another report released on November 19, Mizuho Securities also maintained a Buy rating on the stock with a $195.00 price target.