Analysts continue to see a bright future for the Hong Kong-listed tech giant, Alibaba Group Holding Limited (HK:9988), projecting sustained growth ahead. In recent months, the company received favorable ratings, with DBS and Jefferies both advocating for buying opportunities. The analysts’ optimism stems from Alibaba’s strong presence in the e-commerce realm and its diversified business strategies.
As a prominent Chinese tech firm, Alibaba’s reputation as an online marketplace pioneer precedes itself. Its evolution into other sectors such as cloud computing, digital entertainment, logistics, and financial services exemplifies its adaptability and ambition.
DBS Sees Bright Prospects for Alibaba
DBS analyst Sachin Mittal voiced confidence in Alibaba’s trajectory, vouching for a Buy rating with a projected upside potential of 42.4%. Pointing to an anticipated Compounded Annual Growth Rate (CAGR) of 5% from FY24 to FY27 in core markets like Taobao and Tmall, Mittal highlighted the company’s steady growth. Despite facing vigorous competition in e-commerce from players like PDD Holdings (PDD), the future looks promising for Alibaba.
Moreover, DBS remains bullish on Alibaba’s cloud computing sector, predicting a consistent 6% annual growth rate. This projection is fueled by rising demands for public cloud services and AI-related products. Mittal also underlined the significance of Alibaba’s customer management revenue (CMR) as a driving force for share price growth, foreseeing a robust recovery in FY25 due to heightened merchant and consumer activities.
The upcoming first-quarter results announcement for FY25 on August 15 might face short-term challenges, given fierce competition and China’s economic slowdown. However, analysts maintain a long-term positive outlook on Alibaba’s stock.
Assorted Analyst Views
Alongside DBS, Jefferies analyst Thomas Chong retained a Buy rating on the stock, anticipating a 46.3% upside. In contrast, Macquarie analyst Ellie Jiang opted for a Hold rating, projecting a more modest 2.8% increase.
Is Alibaba Stock a Worthy Investment Now?
Considering the current landscape, Alibaba’s stock holds a Moderate Buy rating on TipRanks, based on two Buy and one Hold recommendations. With a forecasted Alibaba share price target of HK$99.90, investors could potentially gain a 30.5% increase from the present trading value.
Year-to-date, Alibaba shares have experienced a 4.2% uptick, indicating growing investor interest despite market challenges.
Curious for more insights? Check out detailed 9988 analyst ratings.
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