Citi Reiterates Buy Rating on Alibaba (BABA) Following Earnings
Citi analyst Alicia Yap reiterated a Buy rating and $122.00 price target on Alibaba (NYSE: BABA).
The analyst comments "Ali reported mixed FY1Q25 result with total revs of Rmb243.2bn, +4% y/y, 2.7% below our estimate of Rmb250.0bn and 2.6% below consensus of Rmb249.8bn. China retail revs -2% yoy to Rmb107.4bn, with customer management revs (CMR) revs +1% yoy to Rmb80.1bn. 1) Total Taobao and Tmall Group -1% yoy to Rmb113.4bn vs our Rmb118.1bn; 2) Ali International Digital Commerce Group +32% yoy to Rmb29.3bn vs our Rmb30.3bn; 3) Local Services Group +12% yoy to Rmb16.2bn vs our Rmb16.1bn; 4) “Shipping Delivery” Network +16% yoy to Rmb26.8bn; 5) Cloud Intelligence Group +6% yoy to Rmb26.5bn vs our 26.8bn; 6) DME +4% yoy to Rmb5.58mn. Non-GAAP NI to ordinary shareholders -10% yoy to Rmb40.3bn, 16% above our Rmb34.8bn and 6% above consensus of Rmb38.1bn, due to higher GPM and lower R&D partly offset by lower revenues and higher S&M and G&A. Non-GAAP EPADS was Rmb16.44, vs. our Rmb14.01 and cons. of Rmb15.65."
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Shares of Alibaba closed at $79.47 yesterday.