Truist Is Cautious Over Alibaba Despite Its Bullish Rating - Read Why

  • Truist analyst Youssef Squali believed that the slowdown in online sales would affect Chinese e-commerce giant Alibaba Group Holding Limited BABA
  • Squali maintained a Buy rating on Alibaba and cut its price target from $180 to $132 (48.6% upside) a week before Alibaba's earnings results.
  • Squali believes the company's fourth-quarter results and any short-term guidance are likely to point to continued challenges across its segments as it deals with China's slowing economy amid ongoing Covid-19 lockdowns.
  • Also Read: Alibaba, Tencent To Post Lack-Luster Quarterly Results As Domestic Regulatory Crackdown Takes A Toll
  • Squali estimated that China's commerce revenue would slow to 4% year-over-year growth, the lowest in 10 years. 
  • Alibaba's massive dependence on apparel and cosmetics to drive revenue was the hardest hit segment making prospects more challenging for Alibaba.
  • Squali looked forward to the government's assurances of measures to boost the economy for better clarity.
  • JP Morgan Chase & Co JPM recently upgraded Alibaba and other Chinese stock ratings.
  • Price Action: BABA shares traded higher by 0.44% at $87.69 on the last check Thursday.
Posted In: BriefsNewsPrice TargetReiterationAnalyst RatingsTech