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Alibaba plan is a ‘positive catalyst’ for the stock over the next 18 months – Benchmark
© Reuters. Alibaba (BABA) plan is a ‘positive catalyst’ for the stock over the next 18 months – Benchmark
Alibaba ‘s (NYSE:) plan is “a positive catalyst” for the stock in the next six to 18 months, according to Benchmark analysts on Friday.
Along with its , BABA announced a capital management plan while it also revealed upcoming events, including a full spin-off of cloud, IPOs of Cainiao and Freshipoo, and external capital raising of international e-commerce.
The analysts, who have a Buy rating and $180 price target on the stock, told investors in a note that they view the plan as a positive catalyst for BABA, as these capital market actions will trigger the market’s acknowledgment on the hidden value of the key strategic assets.
“On the flip side, lack of near Q (F1Q24) guidance and margin uncertainties as a result of pivoting toward growth may reduce near quarters visibility,” they added.
Baba shares fell over 5% following its earnings release on Thursday, while it is down a further 1.4% so far on Friday, trading around the $84.50 mark.
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