Chinese Conglomerate Alibaba (NYSE:BABA) is reportedly considering a substantial private funding round for its cloud business involving Chinese government-backed businesses as it gears up for a prominent Hong Kong market premiere. This strategic move, as highlighted in a Bloomberg report, is looking to secure a hefty sum ranging from approximately $1.38 to $2.75 billion. While the financial blueprint is still in its infancy, state-supported telecommunication firms are touted as potential investors.
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This is part of Alibaba’s restructuring plan where it intends to break up the company into six different operations as a result of regulatory pressures from the Chinese government. As a result, the conglomerate sanctioned a complete detachment of its Cloud Intelligence unit, intending to facilitate this through a stock dividend distribution to its stakeholders. This separation is on track to culminate in a public listing within the coming year.
Is BABA a Buy, Sell, or Hold?
Turning to Wall Street, analysts have a Strong Buy consensus rating on BABA stock based on 15 Buys, one Hold, and zero Sells assigned in the past three months, as indicated by the graphic above. Nevertheless, the average price target of $141.31 per share implies 48.73% upside potential.
