Alibaba price target lowered to $106 from $113 at BofA

BofA analyst Joyce Ju lowered the firm’s price target on Alibaba to $106 from $113 and keeps a Buy rating on the shares. The firm estimates Alibaba fiscal Q3 total revenue of RMB261b, which would be up 5% year-over-year. Such a deceleration from last quarter’s 9% year-over-year growth is primarily due to the near-term Taobao Tmall revenue “turbulence” as its shifts its focus to users, engagement, and orders, rather than sales and profit, during a strategic transition period. The firm cut its FY24-26 revenue estimate by 2%-4% and adjusted net income view by 3%-12% to reflect continued softness in domestic consumer demand and investments for Taobao Tmall’s longer term growth, AIDC’s global expansion and cloud’s AI potential.