Alibaba Health resumed with a Buy at Goldman Sachs

Goldman Sachs analyst Lincoln Kong resumed coverage of Alibaba Health with a Buy rating and HK$4.40 price target as the firm resumed coverage of the China Online Health sector, which it believes is still in a structural growth phase. The firm prefers Ali Health over JD Health due to the view that the former is set to demonstrate strong margin visibility in the next two years, a better traffic alignment with parent group and focus on non-drug categories with higher take rate, and EPS growth it projects to outpace JD Health, the analyst tells investors.