JPMorgan expects Alibaba’s Q1 CMR to grow 8% on year on solid performance in 618; expects Ant IPO in coming 12 – 18 months
COMPANY NEWS STOCKS VIEWS & ANALYSIS
JPMorgan expects Alibaba’s Q1 CMR to grow 8% on year on solid performance in 618; expects Ant IPO in coming 12 – 18 months
COMPANY NEWS STOCKS VIEWS & ANALYSIS

JPMorgan expects Alibaba’s Q1 CMR to grow 8% on year on solid performance in 618; expects Ant IPO in coming 12 – 18 months

 

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JPMorgan expects Alibaba Group’s first-quarter customer management revenue (CMR) to grow by 8% from a year earlier, mainly due to the solid performance during the 618 Shopping Festival.

The broker expects surprises in a number of its business areas, and believe that the drivers for its stock remain the revenue growth prospects of Taobao Tmall and the progress of the spin-off of its subsidiaries.

JPMorgan raised the forecast of Alibaba’s revenue for 2024 and 2025 by 1% and 2%, respectively, and its adjusted earnings per share by 2% and 1% each. The broker maintained the target price unchanged at HK$140 and kept its Overweight rating.

JPMorgan believes that the Chinese regulators’ latest penalty on Ant Group marks a temporary end to the regulatory actions, which should bode well for Alibaba and the country’s entire internet sector. 

Although the valuation of Ant Group has plummeted 76% to US$78 billion from $320 billion when the firm first proposed its listing plan in 2020, a clear valuation is much better than valuation uncertainty, it said. The broker anticipated that Ant’s IPO will take place within the coming 12-18 months under a normalizing regulatory landscape, and would become a vital catalyst for Alibaba’s share price.