Bernstein Upgrades Alibaba Citing Likeliness Of Ant IPO Soon, Improved GMV Share

Bernstein analyst Robin Zhu upgraded the rating on Alibaba Group Holding Limited BABA to Outperform from Market Perform and raised the price target from $115 to $130.
He expected incremental gross merchandise volume share to likely improve "in the coming quarters," citing easier comparisons and softer macroeconomic issues.
Also Read: Read What It Will Take For Alibaba's Most Accurate Analyst To Reverse His Sell Recommendation
Zhu also noted that Alibaba founder Jack Ma conceived fintech affiliate Ant would likely see an initial public offering soon, driving Alibaba's valuation.
He highlighted the possibility that Alibaba's Hong Kong listing could be its primary listing, with up to $21 billion inflows in its stock.
Related: Chinese authorities braced to conclude a yearlong probe into DiDi Global Inc's DIDIY cybersecurity practices triggering positive vibes in the sector.
Price Action: BABA shares traded lower by 0.43% at $104.30 on the last check Wednesday.