Goldman Sachs kept Alibaba at Buy as first quarter earnings beat expectations

 

>>REAL-TIME UPDATES IN THE WIRE. CLICK HERE<<<

 

 

Goldman Sachs said in a note on Friday that Alibaba Group recorded an EBITA of 34 billion for the first fiscal quarter, beating the bank’s estimate of 27.5 billion yuan and market consensus of 28.1 billion yuan by 25%, on the back of effective cost control measures and narrowing losses from new business initiatives.

Taking into account the results for the first fiscal quarter, Goldman Sachs kept the forecasts of fiscal years of 2023 – 25 largely unchanged, expecting the group’s revenue to grow by 7% year over year in the second fiscal quarter of fiscal year of 2023 and by 6% throughout the year, the bank said.

The bank anticipated that Alibaba’s loss in market share will gradually stabilize and remained positive due to the company’s ability to expand its total addressable market and drive continuous value-add for merchants and consumers based on its three strategic pillars.

Goldman Sachs kept H-shares of Alibaba at Buy, with a target price of HK$163. The stock is trading 3.6% down at HK$92.5 as of 1:28 pm, local time.