HSBC cut target price for Alibaba’s US shares, rating kept unchanged at Buy
COMPANY NEWS STOCKS VIEWS & ANALYSIS
HSBC cut target price for Alibaba’s US shares, rating kept unchanged at Buy
COMPANY NEWS STOCKS VIEWS & ANALYSIS

HSBC cut target price for Alibaba’s US shares, rating kept unchanged at Buy

 

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Alibaba Group is set to announce its financial results for the first fiscal quarter ended June 30, 2023, and the company is expected to deliver a 9% and 18% year-on-year growth in revenue and adjusted EBITA, respectively, with the adjusted EBITA profit margin to climb by 1.3 ppts to 18%, HSBC Global Research said in a report. 

Alibaba’s core China retail commercial customer management revenue (CMR) is expected to grow by 7.1% year over year, which would be consistent with the GMV growth trend, it said. 

The CMR growth may peak in the quarter due to the base effect, but should be able to maintain positive growth in Fiscal year 2024, it said.

The broker cut the target price for Alibaba’s US-traded shares from $140 to $131, with its rating kept at Buy, and the forecast for fiscal years 2024 – 2026 was maintained unchanged.