(ticker: BABA) posted an earnings beat for its fiscal second quarter and revenue growth of 3% on Thursday. The stock jumped 7.8%.
Despite what was seen as a solid day for Alibaba, Benchmark analyst Fawne Jiang cut her 12-month price target on the stock to $180 from $206 on Friday. “Fundamentally, a challenging macroeconomic environment and Covid mobility constraints continue to take a toll on Alibaba’s growth.”
Alibaba is one of many Chinese companies that has taken a hit as the country enforced strict zero-Covid policies that reduce economic activity. However, investors have recently grown more enthusiastic about the possibility of China easing up on its restrictions.
Despite the price target cut, Jiang continues to be bullish on the company and maintained her Buy rating on the stock.
“We are positive on the macro backdrop of 2024 and anticipate recovery of consumer spending,” she wrote.
American depositary receipts of Alibaba declined 3.3% Friday to $81.47. The stock has fallen 32% this year. Of the 54 analysts surveyed by FactSet, 89% rate the stock as a Buy, 11% say it’s a Hold and none say it’s a Sell.
Alibaba Gets a Price Target Cut After Strong Earnings
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Benchmark analyst Fawne Jiang maintained her Buy rating on Alibaba despite cutting her price target.
AFP via Getty Images
Alibaba Group Holding
stock popped on Thursday, prompting an analyst at Benchmark to lower her price target.
Alibaba
(ticker: BABA) posted an earnings beat for its fiscal second quarter and revenue growth of 3% on Thursday. The stock jumped 7.8%.
Despite what was seen as a solid day for Alibaba, Benchmark analyst Fawne Jiang cut her 12-month price target on the stock to $180 from $206 on Friday. “Fundamentally, a challenging macroeconomic environment and Covid mobility constraints continue to take a toll on Alibaba’s growth.”
Alibaba is one of many Chinese companies that has taken a hit as the country enforced strict zero-Covid policies that reduce economic activity. However, investors have recently grown more enthusiastic about the possibility of China easing up on its restrictions.
Despite the price target cut, Jiang continues to be bullish on the company and maintained her Buy rating on the stock.
“We are positive on the macro backdrop of 2024 and anticipate recovery of consumer spending,” she wrote.
American depositary receipts of Alibaba declined 3.3% Friday to $81.47. The stock has fallen 32% this year. Of the 54 analysts surveyed by FactSet, 89% rate the stock as a Buy, 11% say it’s a Hold and none say it’s a Sell.
Write to Angela Palumbo at [email protected]
Source: https://www.barrons.com/articles/alibaba-cut-after-strong-earnings-51668783569?siteid=yhoof2&yptr=yahoo