Alibaba Will Be Critical Beneficiary Of China's Reopening and Economic Recovery, Analysts Say

Mizuho analyst James Lee maintained Alibaba Group Holding Ltd BABA with a Buy and cut the price target from $160 to $155.
The ongoing COVID restrictions and slow macro has extended the 2H22 GMV recovery curve.
As a result, GMV and CMR growth heading into the December quarter remained challenging and tracked below the Street.
However, management executed well on margins by reducing costs in China commerce and across all business segments, exceeding expectations during the quarter.
With China gradually reopening into CY23, he feels GMV growth should recover, and downward revision risks appear limited.
Given the slower recovery trajectory, he trimmed his F25E Consolidated EBITA by 1% to 219 billion RMB.
BABA is an attractive turnaround story in Lee's coverage.
Barclays analyst Jiong Shao reiterated Overweight with a $114 price target.
With the Chinese government having pivoted its policies on Covid in recent weeks, BABA's September quarter results, while broadly in line, were less relevant.
BABA and its e-commerce peers are among the critical beneficiaries of China's reopening and economic recovery in 2023E.
Citigroup analyst Alicia Yap maintained a Buy and reduced the price target from $146 to $144.
UBS analyst Jerry Liu reaffirmed a Buy and cut the price target from $140 to $135.
HSBC analyst Charlene Liu reiterated a Buy and slashed the price target from $132 to $124.
Benchmark analyst Fawne Jiang maintained a Buy and reduced the price target from $206 to $180.
Truist Securities analyst Youssef Squali reiterated a Buy and cut the price target from $125 to $120.
Price Action: BABA shares traded lower by 4.80% at $80.19 on the last check Friday.

BABAAlibaba Group Holding Ltd

$82.75-1.85%

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