Jefferies Reaffirms Buy Rating for Alibaba with Lower Price Target

Jefferies maintains a Buy rating for Alibaba despite a slight reduction in the price target from $153 to $150. Wall Street analysts project a 49.88% potential upside to $155.62. GuruFocus estimates a 7.32% upside to $111.43. Alibaba's GF Value represents GuruFocus' assessment of the stock's fair trading value, calculated from historical trading multiples, past business growth, and future business performance forecasts.

Despite a recent reduction in its price target, Jefferies maintains a Buy rating on Alibaba (BABA) stock. The analyst firm, led by Thomas Chong, lowered its price target from $153 to $150 in a July 9 note, citing near-term margin pressure from increased investment in logistics and instant commerce [1].

However, Jefferies remains bullish on Alibaba's long-term growth story. Chong expects the Cloud Intelligent Group to achieve 23% year-over-year revenue growth in the June quarter, driven by rising enterprise demand for AI solutions [1]. Additionally, record-breaking order volumes across Alibaba's instant commerce platforms, such as Taobao Instant Commerce and Eleme, further underscore the company's momentum [1].

While near-term profitability may be under pressure, Jefferies expects Alibaba to address key topics, including AI cloud momentum and daily active user trends, during its upcoming earnings call [1]. Analysts remain highly bullish about Alibaba's stock trajectory, with 14 Buy ratings and one Hold rating, according to TipRanks [1].

References:
[1] https://www.tipranks.com/news/why-jefferies-is-still-bullish-on-alibaba-stock-baba-after-2-price-target-cuts