BoA Securities reiterated Buy rating for Alibaba, slightly raised target price
BoA Securities reiterated Buy rating for Alibaba, slightly raised target price

BoA Securities reiterated Buy rating for Alibaba, slightly raised target price

 

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BofA Securities said that Alibaba’s revenue for the fiscal first quarter ended 30 June 2022 was broadly in line. The broker raised the forecast of fiscal year 2023 – 2025 earnings per share and lifted its target price from $155 to $156, reiterating a Buy rating.

Alibaba’s cost saving measures have started showing results, particularly in loss-making business and the growth of gross merchandise value (GMV) of Taobao and Tmall inched up a bit along with better average commission rate, the broker said.

However, it noted that Alibaba will see limited consumption visibility in the coming months. Similarly, international commerce would be prone to macroeconomic factors including inflation, euro depreciation, the Russia-Ukraine war, and re-opening, it said.

Alibaba’s cloud business experienced the growth from traditional industries’ digitalization and its internet client demand declines, it said.