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 (NYSE: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 (NYSE: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.

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