Barclays Sees 69% Upside In Alibaba, Hails Baidu Too

Barclays analyst Jiong Shao initiated coverage of Alibaba Group Holding Ltd BABA with an Overweight and $275 price target, implying a 68.8% upside.
The analyst started the China Technology sector with a Positive view saying investors "cannot ignore or not invest" in China since it is the second-largest economy in the world.
The Chinese government aims to make its home-grown internet and tech companies stronger, not weaker.
Alibaba is the analyst's top pick. The company offers one of the most compelling valuations in all of Barclay's coverage.
Shao initiated coverage of Baidu Inc BIDU with an Overweight and $243 price target, indicating a 49.8% upside.
Baidu is one of the most overlooked major Chinese internet stocks and has successfully expanded its advertising business.
Shao initiated coverage of Pinduoduo Inc PDD with an Equal Weight and $103 price target, suggesting an 11.6% upside.
With an overall take rate at 3% or higher currently, PDD will be challenged to make any future improvement in monetization, says the analyst.
Shao initiated coverage of Sea Ltd SE with an Overweight and $427 price target, implying an 18.6% upside.
The analyst views Sea as the dominant e-commerce marketplace and online game developer in Southeast Asia.
Price Action: BABA shares traded higher by 1.08% at $164.66 in the premarket session on the last check Wednesday.