- Benchmark analyst Fawne Jiang reduced the price target on Alibaba Group Holding Ltd (NYSE:BABA) to $220 from $235 (104.3% upside) and kept a Buy rating on the shares.
- Jiang cut her fiscal Q4 revenue forecasts in China commerce direct sales to reflect the disruption of offline businesses due to COVID lockdowns.
- Jiang lowered International Retail growth to reflect weakness in Aliexpress.
- Jiang dropped her cloud revenue growth view to reflect COVID-induced project delays on top of slower growth in the Internet sector.
- The cuts led her to reduce her overall year-over-year revenue growth view to 6% from 9% previously.
- However, at the current valuation, the market "seems to have written off the value" of Alibaba's critical assets in the cloud, logistics, international and local services, leading Jiang to view the risk/reward as "substantially positively biased" for long-term investors.
- Citi recently slashed Alibaba's price target following a Covid resurgence in China.
- Price Action: BABA shares traded lower by 4.36% at $102.99 on the last check Thursday.
