[TOPIC] Is Alibaba Really Worth $210 Given By JPMorgan Analyst?

Tiger_comments
2023-03-30

After $Alibaba(BABA)$’s recent decision to split its business into six different groups, its shares surged and also pushed Hang Seng Index up.

After the split, these groups will be able to seek an IPO respectively.

1. Analysts of JPMorgan and Truist upgrade Alibaba’s rating

The stock claims a Strong Buy consensus rating, based on a unanimous 18 Buys. The average target clocks in at $148.35, making room for gains of ~48% over the one-year timeframe.

a. JPMorgan analyst raises $Alibaba(BABA)$ target to $210

JPMorgan said Alibaba's shares could more than double in a best-case scenario after it separates its businesses.

JPMorgan analyst Alex Yao raised his price target on Alibaba's US shares to $210, and insisted Alibaba’s valuation changed after reorganization. Thus, its shares have further upside in the medium to long term.

Analysts at JPMorgan believe

From the perspective of influencing investor sentiment, we liken Alibaba's change to Google's transition to Alphabet, which is clearly a sentiment booster and should push its stock price higher in the near term.

b. Truist analyst raises $Alibaba(BABA)$ target to $130

Truist analyst Youssef Squali believes that this is a material step to unlock shareholder value and diversify risks. He also believes that demand trends have improved materially since the start of the March quarter, driving positive Y/Y growth.

As such, he reiterated a Buy on BABA shares along with a $130 price target.

2. Views from Tiger Community

@JacksNiffler analyzed valuation of 6 businesses after the split and concluded that

Alibaba's valuation should be $527.7 billion, or $203 per share. This is quite different from the previous separate calculation of $130.6.

To learn more about valuation of six businesses, you can click to read How Valuation changes after Alibaba's split?

@Value_investing was not as optimistic as others. The author believed the reorganization was only helpful for e-commerce business, which encountered a bottleneck.

Contrary to the optimistic expectations of analysts, I personally think that Alibaba's organizational changes won’t boost the stock price much.

To learn more about analysis of Alibaba’s businesses and impacts on Chinese companies, you can click to read Could a restructure really boost Alibaba?

# Are Bullish on Alibaba Cloud Unit Spinoff?

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Comment（159）

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  • koolgal
    ·2023-04-01
    TOP

    🌟🌟🌟It's exciting times for $Alibaba(BABA)$ 

    when news of its upcoming split into 6 businesses hit the markets.  Alibaba is a phenomenal conglomerate and the Granddaddy of Chinese E-Commerce. 

    I am very excited at the forthcoming IPOs of Alibaba businesses and believe that there is definitely huge potential for Alibaba's share price to sky rocket ahead.  It's about time for Alibaba's loyal shareholders to be amply rewarded for their steadfast belief in this wonderful conglomerate!

    Alibaba To The Moon🚀🚀🚀🌛🌛🌛💰💰💰🍀🍀🍀😍😍😍

    @Tiger_chat  

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  • LMSunshine
    ·2023-04-01
    Whether restructuring will boost BABA’s actual valuation is somewhat secondary to me.What I’m absolutely sure is that in the short-term,BABA’s share price will still🚀🚀🚀 Share prices of a stock doesn’t increase/decrease based on its valuation alone.A big part of the stock’s value is investors’ sentiment-classic example TSLA.Another example QQQ-Powell has said Fed WON’T cut rates in 2023 which is bad for tech stocks so why did Nasdaq still rally❓Because investors are 🐂-ish.So as long as there’s no new 🏦 collapse or bad📰 about 🇨🇳's economy,investors will continue to send BABA up until a bad earnings/downgrade from analysts😉 Coins❣️@MasterStonker @MoneyCub @MiniAce @StayCalm @ee244c @Huangyulee @tarotsgirl @Lord_Kuberan @ShengSoon @Decromer @jllwang @Shiella @cristine @Gunawanh @WLing @Zash @Snoopymint @GrumpyDino @YTGIRL @VivianChua @MSJYJ @YJ13 @Bons @bernardtayet @Kindryl @angyenyen @KBWSG @JazzyTizzy @icycrystal @KryZ @Alupigus @aiyoh79 @drandy @eeth @Zack44 @Cyberguard @kaite
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    • icycrystal: 
      thanks for tagging
      2023-04-02
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    • PaulaBaldwin: 
      BABA could be a model for future VIE delistings. And I think, with the VIE gone and ownership claims legally enforceable, BABA may be a great investment.
      2023-04-02
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    • HardyJenny: 
      BABA if they maintain a majority stake which I think likely, could control the terms of an IPO. The CEOs at this point are just operational.
      2023-04-02
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  • LMSunshine
    ·2023-04-01
    Whether restructuring will boost BABA’s actual valuation is somewhat secondary to me.What I’m absolutely sure is that in the short-term,BABA’s share price will still🚀🚀🚀 Share prices of a stock doesn’t increase/decrease based on its valuation alone.A big part of the stock’s value is investors’ sentiment-classic example TSLA.Another example QQQ-Powell has said Fed WON’T cut rates in 2023 which is bad for tech stocks so why did Nasdaq still rally❓Because investors are 🐂-ish.So as long as there’s no new 🏦 collapse or bad📰 about 🇨🇳's economy,investors will continue to send BABA up until a bad earnings/downgrade from analysts😉 Coins❣️ @HSTew @Kerrisdale @PhilipChow @alylady @moliya @maricel @Sonoma @LuckyPiggie @Doge2theMoon @equitygenius @StayHome @SGboy @Sandyboy @Stayclose @DMTrader @BettyT @Bunta @tigjun21 @JohnL @jace0777 @DoreamonGo @TTrade @VonCat @boonk @Trevelyan @jgaldon @fxaw @Kok @Agxm @Dodonan @BubTigger @Niskil @OddEyeCircle @StarAce @zerolih @WuDi @Asphen
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    • equitygenius: 
      I like your post buddy
      2023-04-02
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  • RL7741
    ·2023-03-30
    TOP
    Yes，Alibaba can grow up as China open up Economic but a lots of obstacles will faced.


    Now War n US Banks Crisis make, a lots of uncertainty, 2023 will be a taugh year
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    • LY1970: 
      Cst
      2023-03-31
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    • HarryCox: 
      BABA is still the best business in China anyway
      2023-03-31
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  • LMSunshine
    ·2023-04-01
    Whether restructuring will boost BABA’s actual valuation is somewhat secondary to me.What I’m absolutely sure is that in the short-term,BABA’s share price will still🚀🚀🚀 Share prices of a stock doesn’t increase/decrease based on its valuation alone.A big part of the stock’s value is investors’ sentiment-classic example TSLA.Another example QQQ-Powell has said Fed WON’T cut rates in 2023 which is bad for tech stocks so why did Nasdaq still rally❓Because investors are 🐂-ish.So as long as there’s no new 🏦 collapse or bad📰 about 🇨🇳's economy,investors will continue to send BABA up until a bad earnings/downgrade from analysts😉 Coins❣️ @MeowKitty @Thonyaunn @紫南 @Zarkness @Ah_Meng @Ratt @Tigress02 @Viv22 @aunteenat @airui @0QH @Cris0 @Brocco @AhGong @deal2deal @Ccl2 @Lcc73 @HLPA @WanEH @markele @pipiso @hlw8888 @Huiz84 @Kingcat @Jo_Tan @RedpillBluep @Furore @breAkdaWn @boardy @Cory2 @Soyabean89 @ngph @KYHBKO @Lionel8383 @Downton @SanWangtikup @Setia100 @th0mastan @LesterTan @IAS
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    • Zarkness: 
      :)
      2023-04-03
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  • LMSunshine
    ·2023-04-01
    Whether restructuring will boost BABA’s actual valuation is somewhat secondary to me.What I’m absolutely sure is that in the short-term,BABA’s share price will still🚀🚀🚀 Share prices of a stock doesn’t increase/decrease based on its valuation alone.A big part of the stock’s value is investors’ sentiment-classic example TSLA.Another example QQQ-Powell has said Fed WON’T cut rates in 2023 which is bad for tech stocks so why did Nasdaq still rally❓Because investors are 🐂-ish.So as long as there’s no new 🏦 collapse or bad📰 about 🇨🇳's economy,investors will continue to send BABA up until a bad earnings/downgrade from analysts😉 Coins❣️@SR050321 @CYKuan @HelenJanet @rL @Universe宇宙 @Jadenkho @melson @Mrzorro @GoodLife99 @SPOT_ON @Kaixiang @BenjiFuji @RDPD富爸穷爸 @SirBahamut @b1uesky @MHh @PJoo @Pepermintpat @RiciaYang @jat @Omega88 @爱上投资学 @Zeniv @Elon2 @Yonhuat @grizzlylee @FrankieRed @spkek @snoopy123 @psk @pekss @amroui @StickyRice @StarLuck @Shyon @kungpao @CL Wong @Derrick 1234
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    • Universe宇宙: 
      [ShakeHands] [Like]
      2023-04-02
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    • BenjiFuji: 
      [Great]
      2023-04-02
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    • SPOT_ON: 
      [Call] [Call] [Call] [Call] [Call]
      2023-04-02
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  • 第N次大变革大分流
    ·2023-03-30
    TOP
    华尔街做这种事做得还少吗？多半是哄抬割韭菜，做宣传站台一边可以拿服务费，另一边又可以对散户割韭菜，先做多再做空，司空见惯了。有点高盛的风格了。我不看好阿里巴巴的转型。
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  • tigernoob
    ·2023-03-30
    TOP
    baba is worth more as a sum of parts calculation.

    one thing to consider is a rising tide lift all boats. Chinese stocks have been badly beaten but sentiment appears to be turning recently. 

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  • Bons
    ·2023-04-02
    TOP
    splitting into 6 different segments makes its branch focus more into its respective business. the high improvement into each branch will boost the valuation of $Alibaba(BABA)$ into the analyst's target.
    how about your opinion @Viv22 @LMSunshine @KYHBKO @Tigress02 @Universe宇宙 @kungpao @wine18 @Xian789 @cindyft @MTok
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    • Universe宇宙: 
      [Like] [ShakeHands]
      2023-04-02
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    • BonsReplying toKYHBKO: 
      noted
      2023-04-02
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    • KYHBKO: 
      actually, there is no change to business fundamentals but we can see a better breakdown of expenses and individual performances. more good with this structure
      2023-04-02
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  • Success88
    ·2023-04-01
    $Alibaba(BABA)$ Alibaba use to be a very strong company like Apple. But since Ma Yun is gone the company become in orange alert. I does not think Alibaba worth $210 Thanks. Maybe $140 max
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  • AliceSam
    ·2023-03-30
    TOP
    You believe it ? 阿里巴巴-SW的股票可能会在最好的情况下，在它分离业务后会翻倍以上 [疑问][疑问][疑问]
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  • SPOT_ON
    ·2023-04-02
    First we have to analyze what section its business is dragging down overall profitability.  i like to think it as per sembcorp and sembcorp marine separation .

    but in baba's case is far superior because the individual entity is going for a fresh new listing which will bring fresh amount of cash injection and that will help to prop up the balance sheet and assist baba to further its cash pile or any shares buyback

    @Tiger_chat
    @TigerEvents
    @TigerObserver
    @MHh
    @SR050321
    @HelenJanet
    @LMSunshine
    @Success88
    @Jadenkho
    @melson
    @SirBahamut

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    • HelenJanet: 
      Thanks 👍👍
      2023-04-02
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    • SPOT_ON: 
      [Love] [Love] [Love] [Call] [Call] [Call] [USD] [USD] [USD]
      2023-04-02
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  • 方法顶呱呱
    ·2023-03-31
    对云业务很看好，这是人工智能发展的基石。另外丁丁也在这个板块，可以把丁丁对标slack
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  • Joker_Smile
    ·2023-03-31
    the target of 210 would be set based on many months later. 130 price would be based on weeks after their restructuring plan. no matter what, alibaba is a good company which price will go up.
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  • Ericdao
    ·2023-03-30
    This split will likely hv positive effect as companies is more focused. Individually they could make decision n execution faster, provided their CEO is capable person. If individual company launches IPO, that could have further gain in the price. It's a good move by Jack Ma to capitalise now to prepare for the future. With current high IR, issuing bonds will not be good
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  • MHh
    ·2023-04-07
    Its too early to comment now. The split probably makes it easier to take the different arms forward and less likely to have uniform effect under regulations. but only time will tell. For now, the price momentum has ended. The broader environment will have a bigger effect on price
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  • WanEH
    ·2023-04-03
    the company announcement to split into 6 company is good to release the value of each company. so the share price is flying. but in fundamental point of view, this doesn't bring any changes to the company. the eventually the share price will follow the results of the company.
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  • JohnL
    ·2023-04-02
    The market sentiment has turned around given Jack Ma's return and the split announcement. As a whole, it implies authority support, which is inline with Hong Kong reopening. The JD prop and industrial split support the move. I am long $Alibaba(09988)$ , and this is the inflection imho.
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  • tradelaggard
    ·2023-04-01
    thx for sharing this, don't think BABA is worth that much, but putting out so high target prices signals one thing, market is risk on again. be wary.
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  • Tristen83
    ·2023-03-31
    Good Evening oh might Tiger Initiator, I hope this chat finds you well.

    I write to you to ask your graciousness in awarding myself with the almighty prize of 500 tiger coins for my Tiger Account.
    yours sincerely
    Tristen aka Tiger Tristen roar!!!!

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