CMB International Securities analyst Saiyi He has reiterated their bullish stance on BABA stock, giving a Buy rating on September 29.
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Saiyi He has given his Buy rating due to a combination of factors that highlight Alibaba’s strong growth potential. The company’s cloud segment is expected to see robust revenue growth, driven by increased adoption of AI-related products and a rising demand for digitalization. This growth is further supported by Alibaba’s technological capabilities and the diverse application scenarios of AI, positioning the company as a significant beneficiary of the AI trend.
Additionally, Alibaba’s e-commerce business is poised for solid development, with increased penetration of Quanzhantui and the rapid expansion of the Quick Commerce business enhancing user engagement and customer management revenue. The company’s current valuation is considered attractive compared to global peers, and the strategic focus on “Consumption” and “AI + Cloud” is expected to drive long-term revenue and earnings growth. Consequently, the target price has been raised to reflect the positive outlook for both the cloud and e-commerce sectors, reinforcing the Buy recommendation.
In another report released on September 29, Jefferies also maintained a Buy rating on the stock with a $230.00 price target.