In a report released today, Saiyi He from CMB International Securities maintained a Buy rating on Alibaba, with a price target of $206.40.
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Saiyi He has given his Buy rating due to a combination of factors including Alibaba’s strong cloud revenue growth and potential synergies from its quick commerce initiatives. The company’s cloud segment, Cloud Intelligence Group, reported a significant year-over-year revenue increase, surpassing market expectations, which is attributed to the growing adoption of AI-related products. This robust performance in the cloud sector is expected to continue, supported by substantial capital investments in AI and cloud infrastructure.
Additionally, Alibaba’s quick commerce business has shown impressive revenue growth, and management anticipates a reduction in losses in this segment. The synergies between quick commerce and traditional e-commerce are expected to enhance customer management revenue and cross-selling opportunities. Despite some anticipated fluctuations in customer management revenue growth, the overall outlook remains positive, with Alibaba positioned as a key player in the AI-driven market. These factors contribute to the Buy rating, with a slight adjustment in the target price reflecting the company’s potential for growth.
He covers the Communication Services sector, focusing on stocks such as Baidu, Tencent Holdings , and Iqiyi. According to TipRanks, He has an average return of 13.1% and a 56.29% success rate on recommended stocks.
In another report released today, Benchmark Co. also maintained a Buy rating on the stock with a $195.00 price target.