Morgan Stanley analyst Gary Yu maintains $Alibaba (BABA.US)$ with a hold rating, and adjusts the target price from $90 to $115.
According to TipRanks data, the analyst has a success rate of 37.5% and a total average return of -7.5% over the past year.
Furthermore, according to the comprehensive report, the opinions of $Alibaba (BABA.US)$'s main analysts recently are as follows:
Expectations are set for Alibaba to unveil its fiscal Q2 results in the early to mid part of November, with projections indicating a 6% year-over-year rise in total revenue and a steady performance in core Taobao Tmall revenue on a year-over-year basis. It's anticipated that the China marketplaces' customer management revenue will see a slight increase of 1.8% year-over-year, based on assumptions of a moderate single-digit percentage increase in gross merchandise value (GMV), coupled with a slightly lower blended take rate.
A conservative stance is being maintained on Alibaba because of subdued consumer spending and ongoing reinvestments that are expected to impact earnings. It is anticipated that Alibaba's Gross Merchandise Value will show an annual increase of 4%-5%, compared to the higher single-digit rise in the previous quarter. Additionally, a quicker growth in customer management revenue is forecasted at 2%-3%, an improvement from the 0.6% observed in the first quarter, likely bolstered by software service fees.
Alibaba is anticipated to confront challenges in its fiscal Q2 core-core revenue/profit, particularly within Taobao and Tmall Group, due to a subdued consumption climate. Nevertheless, analysts suggest that investors should look beyond these immediate results in anticipation of positive developments in the upcoming quarters. Comparatively, among the 'big 3' China e-commerce players—Alibaba, PDD Holdings, and JD.com—which are currently trading at similar forward PE multiples, Alibaba is perceived to be the most promising investment option.
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