Alibaba: Jefferies lowers target price

(CercleFinance.com) - Jefferies believes that the company reported better than expected non-GAAP revenue and earnings.


Total revenue increased by 9% y-o-y or 4.5% and 1.7% above analyst and consensus estimates.

"Adjusted EBITDA declined 22% YoY to RMB23.4n (vs consensus at RMB22bn and our estimates at RMB21bn)," the analyst said.

"BABA serves over 1 billion annual active consumers in China and offers differentiated experience to different customer segments throughout the purchase cycle. In addition, it offers high ROI to merchants and empowers them to drive better results. We expect BABA will continue to focus on cost efficiencies and embrace opportunities ahead post pandemic," the research firm added.

Jefferies reiterates its Buy rating on the stock, albeit with a reduced target price of 230 dollars (from 276 dollars).


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