Followers | 680 |
Posts | 141194 |
Boards Moderated | 36 |
Alias Born | 03/10/2004 |
Thursday, July 08, 2021 7:09:50 PM
By: TipRanks | July 8, 2021
Some of the mega-caps have underperformed the market this year, but none have had it as hard as Alibaba (BABA). Shares sit 14% into negative territory in 2021, as the company has engaged in various scuffles with Chinese regulators from which the stock has yet to fully recover.
With the June quarter now behind us, Nomura’s Jialong Shi thinks the company is also suffering due to last year’s post-pandemic economic recovery in China and believes the quarter amounted to a “light period” due to several factors.
“First, the year’s June quarter had a high base to compare as the ecommerce growth last year was fueled by post-pandemic pent-up demand as well as consumer coupons granted by many local municipalities to boost consumption,” the 5-star analyst said. “Secondly, in light of increased regulatory scrutinies, industry leaders like BABA could be increasingly cautious this year in marketing and promotion spends, and this could dent its growth.”
China’s e-commerce market growth is also showing signs of deceleration. The growth rate hit 16% in April yet only reached 10% in May.
As such, while Shi expects Alibaba’s total revenue in 1QFY22 to grow by 33% year-over-year to CNY204 billion, the figure is 5% beneath the latest consensus estimate of CNY215 billion. The analyst also thinks consolidated EBITA could decline by 10% from the same period last year to CNY41 billion, just under the Street’s forecast of CNY42 billion.
The below-consensus revenue projection is due to last year’s acquisition of one of China’s largest supermarket chains Sun Art. China has experienced a massive uptick in online grocery shopping which Shi says is impacting the retail supermarket business.
Consequently, the “sluggish” offline supermarket sales could see revenue for the company’s new retail segment fall by 13% quarter-over-quarter to CNY52 billion, which is also below the Street’s forecast of CNY62 billion.
All in all, however, there’s no change to Shi’s rating which stays a Buy, or price target, which remains at $285. Upside potential from current levels is 42%. (To watch Shi’s track record, click here)
Looking at the consensus breakdown, barring one Hold, all other 26 recent reviews are to Buy, naturally culminating in a Strong Buy consensus rating. The average price target is a bullish one; at $298.33, the figure suggests 12-month gains of ~49%. (See Alibaba stock analysis on TipRanks)
Read Full Story »»»
DiscoverGold
Information posted to this board is not meant to suggest any specific action, but to point out the technical signs that can help our readers make their own specific decisions. Caveat emptor!
• DiscoverGold
Recent BABA News
- Alibaba Group Will Announce March Quarter 2024 and Full Fiscal Year 2024 Results on May 14, 2024 • Business Wire • 04/30/2024 09:00:00 AM
- Alibaba.com Unveils Affordable, Customizable Logistics Solutions for U.S. SMEs • PR Newswire (US) • 04/17/2024 02:00:00 PM
- Delta Generates US$37 Million Profit in Q1, Google and Intel Unveil Cutting-Edge AI Chips, and More News • IH Market News • 04/10/2024 11:13:48 AM
- Boeing Down in Pre-Market Due to CEO Developments and Denver Incident; MicroStrategy Surges 11% with BTC Spike, and More • IH Market News • 04/08/2024 11:17:49 AM
- Cal-Maine Surges on Strong Quarterly Performance, Taiwan Earthquake Disrupts Tech Supply Chain, and More • IH Market News • 04/03/2024 11:12:20 AM
- Walgreens Slashes Annual Profit Forecast; MillerKnoll Nosedives 17% on Bleak 4Q Outlook, and Latest News • IH Market News • 03/28/2024 01:48:04 PM
- AliExpress becomes the first exclusive e-commerce partner of UEFA EURO 2024™ • PR Newswire (US) • 03/27/2024 02:35:00 PM
- AliExpress becomes the first exclusive e-commerce partner of UEFA EURO 2024™ • PR Newswire (Canada) • 03/27/2024 02:16:00 PM
- AliExpress becomes the first exclusive e-commerce partner of UEFA EURO 2024™ • PR Newswire (US) • 03/27/2024 02:16:00 PM
- Alibaba Group Cainiao IPO Update and Share Purchase Offer Conference Call • Business Wire • 03/26/2024 10:40:00 AM
- Crypto: AIOZ Network Partners with Alibaba Cloud, Google Integrates ENS Domain Balances, and Key Updates • IH Market News • 03/22/2024 05:32:29 PM
- FedEx Soars 13% with Profits Above Forecasts, Nike Hit by China Slowdown, and Latest News • IH Market News • 03/22/2024 01:07:53 PM
- Alibaba.com Witnesses Notable Increase in U.S.-Based SME Buyers During Its Annual March Expo • PR Newswire (US) • 03/21/2024 02:00:00 PM
- Apple Pre-Market Drop Due to Antitrust Threats, Surprising Profit Boosts Micron Shares, and Latest Market Updates • IH Market News • 03/21/2024 11:17:26 AM
- Alibaba.com Records Strong Growth in the Number of UK SME Buyers at This Year's March Expo • PR Newswire (US) • 03/21/2024 09:30:00 AM
- Unilever Initiates Ice Cream Division Spin-Off and Announces Job Cuts; Berkshire Ramps Up Share Buyback Efforts, and More • IH Market News • 03/19/2024 11:33:10 AM
- AliExpress Levels Up Experience for U.S. Customers with Updated Shopping Guarantees and a Redesigned Mobile App • PR Newswire (US) • 03/18/2024 02:49:00 PM
- Apple & Google in Talks for Gemini AI on iPhone, Nvidia’s GTC Conference Today, and Latest News • IH Market News • 03/18/2024 11:10:46 AM
- Adobe Stock Drops Following Below-Estimate Projections, Cardlytics Surges with Unexpected Profit, and More News • IH Market News • 03/15/2024 11:30:55 AM
- Sam Altman Rejoins OpenAI Board; Coinbase, MicroStrategy Surge Pre-Market Amidst Bitcoin’s Latest Milestone • IH Market News • 03/11/2024 10:39:03 AM
- CNOOC Oil Field Discovery in South China Sea, Grifols Surges 18% After KPMG Approval, and Latest News • IH Market News • 03/08/2024 11:19:59 AM
- Alibaba Releases Report on Cross-Border Trade's Positive Impact on the U.S. Economy • PR Newswire (US) • 03/06/2024 11:00:00 AM
- Alibaba.com's Annual March Expo Highlights Small Business Sourcing Trends and Rolls Out More Guaranteed Services • PR Newswire (US) • 02/29/2024 03:29:00 PM
- AliExpress Marks Choice Anniversary with Deals and New Ambassadors • PR Newswire (US) • 02/29/2024 08:07:00 AM
- AliExpress Marks Choice Anniversary with Deals and New Ambassadors • PR Newswire (US) • 02/29/2024 08:01:00 AM
Avant Technologies Equipping AI-Managed Data Center with High Performance Computing Systems • AVAI • May 10, 2024 8:00 AM
VAYK Discloses Strategic Conversation on Potential Acquisition of $4 Million Home Service Business • VAYK • May 9, 2024 9:00 AM
Bantec's Howco Awarded $4.19 Million Dollar U.S. Department of Defense Contract • BANT • May 8, 2024 10:00 AM
Element79 Gold Corp Successfully Closes Maverick Springs Option Agreement • ELEM • May 8, 2024 9:05 AM
Kona Gold Beverages, Inc. Achieves April Revenues Exceeding $586,000 • KGKG • May 8, 2024 8:30 AM
Epazz plans to spin off Galaxy Batteries Inc. • EPAZ • May 8, 2024 7:05 AM