In a report released on September 25, Lei Yang CFA from CGS-CIMB reiterated a Buy rating on Alibaba Group Holding Ltd., with a price target of HK$207.00.
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Lei Yang CFA has given his Buy rating due to a combination of factors including Alibaba’s strategic focus on expanding its AI and cloud capabilities. The company plans to significantly increase its capital expenditure on AI, aiming to enhance its global data centers’ energy consumption scale by tenfold by 2032. This ambitious growth plan is supported by Alibaba’s robust AI ecosystem, which includes a comprehensive portfolio of large language models and a strategic partnership with NVIDIA to advance Physical AI initiatives.
Furthermore, Alibaba’s efforts to expand its in-store business through group-buying services and strategic promotions are expected to drive revenue growth, particularly during competitive periods like the Double 11 Shopping Festival. The company’s cloud revenue is projected to grow substantially, contributing to an overall positive financial outlook. These strategic initiatives, combined with an increase in non-GAAP EPS forecasts, underpin the Buy rating, with a higher DCF-based target price of HK$207.
In another report released today, Jefferies also maintained a Buy rating on the stock with a HK$223.00 price target.
9988’s price has also changed moderately for the past six months – from HK$127.700 to HK$172.000, which is a 34.69% increase.