Alibaba (BABA) Stock Price Cut at Needham as Macro Headwinds Continue To Weigh On Businesses
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Needham & Company analyst Vincent Yu lowered the price target on Alibaba (NYSE: BABA) to $180.00 per share from the prior $230.00 to reflect the macro weakness.
Weak retail sales data in China pushed the analyst to lower the total revenue estimate by 1% and our operating income estimate by 17% for F3Q22.
“Recent resurgence of COVID-19 cases had caused multiple cities to lock-down. Along with the impacts from the regulations on internet, education and real estate sectors, we are seeling China's macro continue to exhibit weakness on the consumer spending side. The Y/Y growth rate of monthly total retail decelerated to +3.9% in November, despite the positive impact from Single's Day promotional campaign, from +12.1% in June. Monthly total online retail Y/Y growth rate decelerated to 6.3% in November from 13.9% in June. We expect bigger deceleration in December,” Yu said in a client note.
BABA stock price is up 2% in today’s trading session.
By Senad Karaahmetovic | email@example.com
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