Benchmark analyst Fawne Jiang maintained a Buy rating on Alibaba Group Holding Ltd (NYSE:BABA) and lowered the price target to $118.
Alibaba reported third-quarter fiscal 2024 with a solid profit beat on moderately below expectation revenue.
Jiang’s key takeaway from the quarter was that BABA is back on offense – the company has decided to pivot toward growth and invest in revitalizing its core businesses (Taobao and Tmall Group or TTG, Cloud, and Alibaba International Digital Commerce Group or AIDC).
For TTG specifically, they are committed to reinvesting the incremental Customer management revenue (CMR) to propel GMV growth, encouraged by the recent positive growth signs.
Jiang noted the renewed growth focus as a positive strategic move but acknowledged that growth recovery may take time to materialize and sustain. With the pace and magnitude of the investment cycle uncertain, he anticipated volatility in profit in the fourth quarter of fiscal 2024 and fiscal 2025.
He has lowered his fiscal 2024 and fiscal 2025 adjusted EBITDA estimates accordingly. On the positive side, Jiang said BABA accelerated its share buyback in the quarter.
It announced an increase of its share repurchase program of $25 billion with a total balance of $35.3 billion available through the next three fiscal years.
Susquehanna analyst Shyam Patil maintained Alibaba with a Positive and lowered ...