Alibaba Group Holding Ltd BABA shares are trading lower Wednesday.
Bernstein analyst Robin Zhu upgraded Alibaba from a Market Perform rating to Outperform and raised the price target from $115 to $130, citing an end to the company's recent "winter" on the back of softer comps.
Zhu expects incremental gross merchandise volume share to improve in the coming quarters, as macroeconomic conditions get better. The Bernstein analyst also noted that Alibaba affiliate Ant Group is likely to go public soon, which should boost Alibaba's valuation.
Chinese tech stocks are volatile following reports that regulators are wrapping up an investigation into Didi Global.
Alibaba operates China's online marketplaces, including Taobao (consumer-to-consumer) and Tmall (business-to-consumer).
BABA Price Action: Alibaba has traded between $216.39 and $73.28 over a 52-week period.
The stock was down 1.12% at $103.58 at press time, according to data from Benzinga Pro.
Photo: courtesy of Alibaba.
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