Truist sees Alibaba reorganization driving accountability, shareholder value

Truist notes Alibaba has announced that it will reorganize into six business groups. Daniel Zhang will continue to serve as Chairman and CEO of Alibaba Group following a holding company management model, while each of the six business groups will be managed by its own CEO and, importantly, board of directors. Truist points out that the company has been gradually moving towards this corporate structure, and that this set up is virtually in line with its segment reporting. The firm believes Alibaba’s reorganization will drive greater accountability near-term, and unlock shareholder value long-term. Truist has a Buy rating on the shares with a price target of $130.