- The shares of Alibaba (NYSE: BABA) have received a $175 price target from BofA Securities. These are the details.
The shares of Alibaba (NYSE: BABA) have received a $175 price target from BofA Securities. And BofA Securities analyst Eddie Leung is maintaining a “Buy” rating on the shares.
Leung adjusted the rating ahead of Alibaba’s Q4 2022 results scheduled for May 26.
“We model revenue to grow 9% YoY to RMB204b, GAAP op loss to improve to RMB(2.3)b from RMB(7.7)b a year ago, and adj. EBITDA of RMB16.6b. Specifically, we estimate 1) its core China commerce revenue, which includes its domestic retail and B2B businesses, to be up by 9.8% YoY as strength in Jan and Feb offset the impact from more lockdowns in Mar; 2) moderate deceleration of local services (39% YoY) and Cloud (17% YoY); 3) a YoY decrease of 8ppt in adj. EBITDA margin, improving from declines of 13ppt and 10ppt in the previous two quarters because of cost control measures,” wrote Leung in a research note.
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