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J.P. Morgan Maintains Alibaba(BABA.US) With Buy Rating, Raises Target Price to $125

Futu News ·  Oct 10 20:36  · Ratings

J.P. Morgan analyst Alex Yao maintains $Alibaba (BABA.US)$ with a buy rating, and adjusts the target price from $108 to $125.

According to TipRanks data, the analyst has a success rate of 49.0% and a total average return of 5.5% over the past year.

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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-November period, with projections indicating a 6% annual increase in total revenue. It's anticipated that the core revenue from Taobao and Tmall will remain relatively unchanged from the previous year. The forecast also suggests a modest 1.8% year-over-year rise in customer management revenue from the China marketplaces, predicated on a mid-single digit percentage growth in gross merchandise value, or GMV, coupled with a slightly reduced blended take rate.

  • The firm maintains a cautious stance on Alibaba, influenced by subdued consumer spending and ongoing reinvestments that are expected to impact earnings. The anticipation is for the Gross Merchandise Value to rise by 4%-5% year over year, compared to the higher single digits seen in the first quarter. Additionally, projections include an acceleration of customer management revenue growth to 2%-3%, up from 0.6% in the previous quarter, potentially supported by software service fees.

  • Expectations are set for Alibaba's fiscal second quarter revenue and profit at its core platforms, Taobao and Tmall, to be challenged by a subdued consumption climate. However, it is suggested that investors look past these results in anticipation of forthcoming positive catalysts. Comparing the forward price-to-earnings multiples of the 'big 3' China e-commerce companies—Alibaba, PDD Holdings, and JD.com—Alibaba is viewed as the most promising of the trio.

Note:

TipRanks, an independent third party, provides analysis data from financial analysts and calculates the Average Returns and Success Rates of the analysts' recommendations. The information presented is not an investment recommendation and is intended for informational purposes only.

Success rate is the number of the analyst's successful ratings, divided by his/her total number of ratings over the past year. A successful rating is one based on if TipRanks' virtual portfolio earned a positive return from the stock. Total average return is the average rate of return that the TipRanks' virtual portfolio has earned over the past year. These portfolios are established based on the analyst's preliminary rating and are adjusted according to the changes in the rating.

TipRanks provides a ranking of each analyst up to 5 stars, which is representative of all recommendations from the analyst. An analyst's past performance is evaluated on a scale of 1 to 5 stars, with more stars indicating better performance. The star level is determined by his/her total success rate and average return.

The above content is for informational or educational purposes only and does not constitute any investment advice related to Futu. Although we strive to ensure the truthfulness, accuracy, and originality of all such content, we cannot guarantee it.
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