financetom
Personal Finance
financetom
/
Personal Finance
/
Research Alert: CFRA Maintains Buy Opinion On Shares Alibaba Group Holding Limited
News World Market Environment Technology Personal Finance Politics Retail Business Economy Cryptocurrency Forex Stocks Market Commodities
Research Alert: CFRA Maintains Buy Opinion On Shares Alibaba Group Holding Limited
May 26, 2025 9:34 AM

09:35 AM EDT, 05/16/2025 (MT Newswires) -- CFRA, an independent research provider, has provided MT Newswires with the following research alert. Analysts at CFRA have summarized their opinion as follows:

We reduce our 12-month target to USD158 from USD175, on P/E of 14.4x our CY 26 view of USD11.00, which is near its five-year historical forward average but well below the 21x over the last decade. After posting mixed Mar-Q results, we adjust our FY 26 (Mar.) EPS estimate to CNY69.57 from CNY74.01 and initiate FY 27 at CNY 79.40. We believe BABA is doing a great job with cost efficiencies and exiting non-core businesses that are unprofitable amid a time when it is aggressively spending to accelerate higher quality cloud revenue. We think domestic e-commerce revenue is now better positioned after favorable policy decisions (e.g., walking back elevated tariffs), while emphasis on higher quality services could help improve BABA's installed base, but we note that competitive pressures remain elevated. Cloud's adjusted EBITDA increased by 69% in Mar-Q as we see scalability from higher spend, with significant upside over the next three to five years due to greater AI spend/higher capacity and monetization efforts.

Comments
Welcome to financetom comments! Please keep conversations courteous and on-topic. To fosterproductive and respectful conversations, you may see comments from our Community Managers.
Sign up to post
Sort by
Show More Comments
Related Articles >
What is a CD (certificate of deposit)?
What is a CD (certificate of deposit)?
Sep 30, 2024
Our writers and editors used an in-house natural language generation platform to assist with portions of this article, allowing them to focus on adding information that is uniquely helpful. The article was reviewed, fact-checked and edited by our editorial staff prior to publication. Key takeaways A CD locks in your money for a set period of time, also known as...
How to build equity in your home in 2024 (and why you should)
How to build equity in your home in 2024 (and why you should)
Sep 22, 2024
Key takeaways Building home equity can not only be a reliable way to create wealth but can also help you maintain the home while you're living in it. Building home equity generally involves increasing your property's value or decreasing your mortgage debt, or some combination of both. Increases in home equity go hand in hand with increases in property values...
How do stocks perform after the Fed cuts interest rates? Pretty well, actually.
How do stocks perform after the Fed cuts interest rates? Pretty well, actually.
Sep 22, 2024
Although the stock market has had a nice run so far in 2024, many investors have been nervous that a slowing economy may tip over into an outright recession. To thwart that possibility, the Federal Reserve has begun lowering interest rates, providing stimulus to consumers and businesses, some of whom have been reeling despite overall economic growth. In its September...
Retirement annuities: Pros and cons of annuity investing
Retirement annuities: Pros and cons of annuity investing
Sep 22, 2024
Our writers and editors used an in-house natural language generation platform to assist with portions of this article, allowing them to focus on adding information that is uniquely helpful. The article was reviewed, fact-checked and edited by our editorial staff prior to publication. An annuity is a contract issued by an insurance company that pays a stream of income for...
Copyright 2023-2025 - www.financetom.com All Rights Reserved