JPMorgan expects a positive share price reaction to Alibaba’s reorganization announcement. The firm’s sum-of-the-parts valuation analysis indicates a $210 value per share as a "blue sky scenario," the analyst tells investors in a research note. JPMorgan expects the reorganization to make the entire company more cost-efficient as individual business units become accountable for their own performance. The reorganization will lead to consistent margin improvement in the future, says the analyst, who keeps an Overweight rating on Alibaba with a $140 price target.
Published first on TheFly
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