- Barclays analyst Jiong Shao initiated coverage of Alibaba Group Holding Ltd BABA with an Overweight and $275 price target, implying a 68.8% upside.
- The analyst started the China Technology sector with a Positive view saying investors "cannot ignore or not invest" in China since it is the second-largest economy in the world.
- The Chinese government aims to make its home-grown internet and tech companies stronger, not weaker.
- Alibaba is the analyst's top pick. The company offers one of the most compelling valuations in all of Barclay's coverage.
- Shao initiated coverage of Baidu Inc BIDU with an Overweight and $243 price target, indicating a 49.8% upside.
- Baidu is one of the most overlooked major Chinese internet stocks and has successfully expanded its advertising business.
- Shao initiated coverage of Pinduoduo Inc PDD with an Equal Weight and $103 price target, suggesting an 11.6% upside.
- With an overall take rate at 3% or higher currently, PDD will be challenged to make any future improvement in monetization, says the analyst.
- Shao initiated coverage of Sea Ltd SE with an Overweight and $427 price target, implying an 18.6% upside.
- The analyst views Sea as the dominant e-commerce marketplace and online game developer in Southeast Asia.
- Price Action: BABA shares traded higher by 1.08% at $164.66 in the premarket session on the last check Wednesday.
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