[ET Net News Agency, 26 June 2020] Goldman Sachs raised its target price for Alibaba
Group (09988) to HK$276 from HK$273 factoring in its new forex of US$7.15/Rmb and
maintained its "buy" rating.
The research house said "6.18" performance points to a recovery in engagement, GMV
(gross merchandise volume) and revenue growth rates in 2Q, as well as providing us with
evidence of a more aggressive stance on defending their home turf.
Goldman also noted that the Softbank overhang was removed. The valuation of Alibaba is
inexpensive, as the core trades at 13.5x 2021 (overall 19.4x). Its underperformance
year-to-date, 8% versus China average of 16.1%, and the prospects for Southbound inclusion
after the 4 August HSI inclusion are share price catalysts. (KL)