Saiyi He, an analyst from CMB International Securities, maintained the Buy rating on Alibaba (BABA – Research Report). The associated price target was lowered to $155.50.
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Saiyi He has given his Buy rating due to a combination of factors including Alibaba’s strong financial performance and strategic growth initiatives. The company reported a significant increase in adjusted EBITA, driven by improved profitability across its business segments, particularly in the Taobao and Tmall Group. This growth is expected to continue into the next fiscal quarter, supported by healthy GMV growth and increased take rates.
Furthermore, Alibaba’s Cloud Intelligence Group has shown promising revenue growth, with expectations for further acceleration as digitalization demand increases. The company’s ongoing investment in technology and R&D is seen as a foundation for long-term growth in the cloud sector. Despite some challenges in other segments, such as Local Services Group and Cainiao, the overall outlook remains positive, justifying the Buy rating with a target price of US$155.5.
According to TipRanks, He is a 5-star analyst with an average return of 14.2% and a 64.25% success rate. He covers the Communication Services sector, focusing on stocks such as NetEase, Tencent Holdings , and Tencent Music Entertainment Group.
In another report released today, DBS also maintained a Buy rating on the stock with a $157.00 price target.