TECH - Alibaba's Cloud Business Spinoff Cancelation Sparks Mixed Reactions From Analysts | Benzinga
The recent decision by Alibaba Group Holding Limited (OTC:BABAF) to cancel the spinoff of its cloud business was met with mixed responses from investors.
What Happened: As reported by CNBC, Morgan Stanley scratched Alibaba from its top pick in the internet sector, pointing to the unexpected cloud IPO cancellation as a contributing factor. The team of analysts, headed by Gary Yu, readjusted the price target from $125 to $110, still suggesting a 42% upside potential.
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The “lackluster” earnings report of the company and the cloud spinoff cancellation were criticized by Bernstein analysts who scaled back the price target from $100 to $93.
On the other hand, Barclays proposed that the cancellation of the spinoff might be the “right decision” in the face of regulatory uncertainties. The bank commended the company’s “aggressive” share buybacks and newly announced annual dividends, retaining a $138 price target.
JPMorgan analysts also weighed in, ...