- JPMorgan Chase & Co and MorganStanley Analysts lowered their price target for Alibaba Group Holding Limited BABAmaking the Chinese e-commerce giant more bearish on sales concerns.
- Alibaba’s September quarter sales prospects are eroding on weak consumption in China, Bloomberg Reports citing analysts.
- JPMorgan lowered its price target on Alibaba to $135 from $145, citing a weaker sales outlook near-term that could continue to weigh on the stock price despite staying flat or even potential better, prospects of profit.
- Also read: Alibaba Cloud is aggressive in overseas collaboration
- JPMorgan believed that sentiment-driven cash inflows are the key driver of stock prices right now and earnings recovery is the key determinant of market sentiment.
- Morgan Stanley also slashed Alibaba’s share price to $110 from $140, citing weak consumption and trader sentiment.
- JPMorgan said macro headwinds in China could limit Alibaba’s core sales improvement as consumer sentiment recovery and COVID policy easing are little visible.
- Earlier, a JPMorgan report sparked broad sell-offs after calls the sector “non-investable.”
- Since then, JPMorgan has raised the price target and upgraded the industry in May, citing a improved regulatory environment.
- Price promotion: BABA shares closed down 2.38% at $79.06 on Friday.
© 2022 Benzinga.de. Benzinga does not provide investment advice. All rights reserved.
