Despite Macro Pressures, Alibaba Shows Resilience and Potential for Long-Term Value, Says Analyst
Portfolio Pulse from Anusuya Lahiri
Susquehanna analyst Shyam Patil reiterated Alibaba Group Holding Limited (NYSE:BABA) with a Positive and a $160 price target. Despite facing macro and pandemic pressures, Alibaba's Q1 results showed solid execution and cost controls. The company's restructuring is seen as a potential long-term value driver. Alibaba's EBITDA surpassed estimates, aided by top-line beat and continued cost controls. The company's cloud business is under pressure due to declining hybrid cloud revenues and project delays. Patil estimates Q2 revenue of RMB 207.176 million and FY23 revenue of RMB 868.687 million.
August 31, 2023 | 8:27 pm
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NEUTRAL IMPACT
Alibaba's Q1 results showed solid execution and cost controls, despite macro and pandemic pressures. The company's restructuring is seen as a potential long-term value driver. However, its cloud business is under pressure due to declining hybrid cloud revenues and project delays.
Alibaba's Q1 results showed solid execution and cost controls, which is a positive sign for investors. However, the company's cloud business is under pressure due to declining hybrid cloud revenues and project delays, which could negatively impact the company's future performance. The company's restructuring is seen as a potential long-term value driver, which could positively impact the company's stock price in the long term. Therefore, the short-term impact on the stock price is neutral.
CONFIDENCE 90
IMPORTANCE 80
RELEVANCE 100