Nomura Lowered Alibaba's Target Price, While Barclay Remains Optimistic

On the same day, Barclay released a new report on Alibaba and it reiterates its "overweight" ratings with a target price of $210 per share.

Shirley Tian
    Oct 30, 2018 2:30 PM  PT
Nomura Lowered Alibaba's Target Price, While Barclay Remains Optimistic
author: Shirley Tian   

Just days before Alibaba (NYSE: BABA) announce its latest quarter earnings, Nomura Instinet analyst Jialong Shi lowered the price target on this e-commence giant to $202 per share from $224, while maintaining a "buy" rating.

On the same day, Barclay released a new report on Alibaba and it reiterates its "overweight" ratings for the stock with a price target of $210, citing opportunites as new initiatives like Cainiao, Intime, Ele.me, Koubei, and HeMa joined Alibaba's existing e-commerce ecosystem. 

"We expect significant synergies among Alibaba's various divisions – while its online advantages can provide user traffic/data to the other apps, the offline services can enhance user experience and substantially grow the TAM [total addressable market]," said Gregory Zhao, Barclay's analyst. "Also, its cloud and logistics infrastructures build a solid foundation to facilitate the other businesses' operations." 

Alibaba will announce its second quarter results on Nov. 2. 

The stock price of Alibaba has plunged more than 25 percent this year in the midst of macro uncertainties. It fell to a 15-month low today in New York in early morning trading to $130.06 per American depositary share.

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