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<Research>Macquarie Adjusts BABA-W's TP to HKD228.2; Mkt Assumptions on Alibaba Cloud Contribution Too Conservative
Recommend 16 Positive 28 Negative 5 |
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Macquarie has released a report predicting that BABA-W's (09988.HK) cloud business will continue to accelerate growth in the current fiscal year, and the more diversified monetization opportunities will provide potential for long-term margin expansion. Meanwhile, both user traffic and transaction volume trends are expected to remain robust, even though the rapid e-commerce summer activities may lead to greater losses. Macquarie reiterated an Outperform rating on BABA-W. Based on its position as the best full-stack tech giant spanning from infrastructure to application level, the broker reduced its target price from HKD229.1 to HKD228.2. Macquarie also believes that compared to Amazon Web Services (AWS), which is widely considered to account for over 50% of Amazon's equity value, the market's current assumption of Alibaba Cloud's valuation contribution of about 15-20% is too conservative, indicating room to further narrow the valuation gap with its US peers. AAStocks Financial News |
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