On Monday, Alibaba (NYSE:BABA) Group Holding Ltd (NYSE:BABA) saw its price target increased to $116 from the previous target of $114, with a continued Buy rating, by an analyst from Jefferies. The firm's confidence in the company is rooted in Alibaba's commitment to its three-year plan, which emphasizes growth in users, order volume, and Gross Merchandise Volume (GMV) as initial goals.
The analyst highlighted that Alibaba's full marketing solutions, along with WXT and other offerings, are anticipated to propel revenue growth in the second half of fiscal year 2025. For the June quarter, the analyst expects Alibaba's Customer Management Revenue (CMR) growth assumptions to remain steady and believes the total revenue will meet expectations.
The forecast for Alibaba's overall EBITA (Earnings Before Interest, Taxes, and Amortization) is also predicted to align with estimates. This takes into account the reinvestment in Taobao Tejia (TTG) and anticipated improvements in User Experience (UE) for Alibaba Innovative Initiatives Division (AIDC). The analyst's statement concluded with a reinforcement of the Buy rating for Alibaba's stock.
In other recent news, Alibaba Group Holding Ltd has disclosed an update on its share repurchase program, signaling an active capital return strategy. The company also reported robust growth in its core businesses and artificial intelligence revenue during the March quarter and full fiscal year 2024, with notable increases in key segments. In addition, Alibaba raised $5 billion through a private offering of convertible senior notes. Analyst firms BofA Securities, Loop Capital, and Mizuho have all adjusted their stock price targets for Alibaba, maintaining a Buy rating.
In a bid to support Micro-, Small, and Medium-Sized Enterprises (MSMEs), Alibaba.com has launched Alibaba Guaranteed, a service aimed at streamlining global sourcing and supply chain processes. The platform has also intensified its efforts to empower MSMEs with artificial intelligence tools. These are among the recent developments for Alibaba.
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