Get 40% Off
⚠ Earnings Alert! Which stocks are poised to surge?
See the stocks on our ProPicks radar. These strategies gained 19.7% year-to-date.
Unlock full list

Alibaba cut at Macquarie as defense and expansion caps earnings upside

Published 02/08/2024, 10:59 AM
Updated 02/08/2024, 11:06 AM
© Reuters.  Alibaba (BABA) cut at Macquarie as defense and expansion caps earnings upside

Alibaba (NYSE:BABA) was cut to Neutral from Outperform by Macquarie Equity Research in a note to clients on Thursday. The firm has an $85.40 price target on the stock.

Analysts told investors that following BABA's earnings, they see the company balancing defense and expansion, which they believe potentially caps earnings upside for now.

They explained that BABA management is committed to stepping up investments in 2024E to defend its market leadership with EC (domestic/overseas) and cloud the priorities.

"While the soft numbers were somewhat anticipated by the market, we foresee high competitive intensity and macro uncertainty persisting for the time being, which would push BABA into a new investment cycle and potentially blur earnings visibility in upcoming periods," the analysts explained.

"We see some savings from non-core units to partially offset incremental investments but expect group earnings to enter a declining trajectory, with adj. EBITA -3% yoy in FY3/25E," added the analysts.

Latest comments

A stonk only a 🤡 could love… ‘at least you get a dividend’ 🤣 🤣 🤣
Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.