Alibaba (BABA) Price Target Cut by Citic Lyon Due to Profit Concerns

2 days ago

Citic Lyon has revised its forecast for Alibaba (BABA, Financial), reducing the 2025-2026 fiscal year's adjusted net profit estimates by 17% and 25%, respectively. The firm also lowered its target price for Alibaba's US-listed shares by 6%, from $165 to $155, and downgraded its rating from "High Conviction Outperform" to "Outperform".

This adjustment follows the spin-off of Sun Art Retail and Intime Retail. Citic Lyon predicts Alibaba's total revenue for the fiscal quarter ending in June increased 2.4% year-over-year to RMB 249.2 billion. Excluding these divestments, revenue is expected to have grown around 10% year-over-year, driven by solid growth in Taobao and Tmall customer management revenue, international retail, and Alibaba Cloud.

However, the group's adjusted EBITA may have declined 16.3% year-over-year to RMB 37.7 billion due to approximately RMB 10 billion in on-demand investments. The profit margin is anticipated to have decreased by 3.4 percentage points to 15.1%, with further pressure expected in the fiscal quarter ending in September.

Disclosures

I/We may personally own shares in some of the companies mentioned above. However, those positions are not material to either the company or to my/our portfolios.

Research Tools

All-In-One Screener Stock Ideas Stock List Guru List Guru Real-Time Picks Insider List Insider Trades Economic Indicators Sector & Industry Performance DCF Calculator Discussion Board

Product

Pricing Plans Excel Add-In Google Sheets Add-on Data API Stock Comparison Table Manual of Stocks Instant Alerts Mobile App 中文

Education

Financial Glossary Tutorials FAQ Schedule Free Session Buffett Indicator Shiller P/E Yield Curve Today U.S. Inflation Rate Global Market Valuation Fed Net Liquidity Buffett Assets Allocation

Company

About GuruFocus Career Contact Us Advertise Term of Use Privacy Policy Referral Program Partner Program

Survey

We'd love to learn more about your experiences on GuruFocus.com and how we can improve!

Take Survey

Disclaimers

GuruFocus.com is not operated by a broker or a dealer. Under no circumstances does any information posted on GuruFocus.com represent a recommendation to buy or sell a security. The information on this site, and in its related newsletters, is not intended to be, nor does it constitute investment advice or recommendations. The individuals or entities selected as "gurus" may buy and sell securities before and after any particular article and report and information herein is published, with respect to the securities discussed in any article and report posted herein. Gurus may be added or dropped from the GuruFocus site at any time. In no event shall GuruFocus.com be liable to any member, guest or third party for any damages of any kind arising out of the use of any content or other material published or available on GuruFocus.com, or relating to the use of, or inability to use, GuruFocus.com or any content, including, without limitation, any investment losses, lost profits, lost opportunity, special, incidental, indirect, consequential or punitive damages. Past performance is a poor indicator of future performance. The information on this site, and in its related newsletters, is not intended to be, nor does it constitute investment advice or recommendations. The information on this site is in no way guaranteed for completeness, accuracy or in any other way. The gurus listed in this website are not affiliated with GuruFocus.com, LLC. Stock quotes are provided by QuoteMedia, Inc. (CSI). Company fundamental data is provided by Morningstar. Analyst estimates data is sourced from both Refinitiv and Morningstar, with priority given to Refinitiv data. Data is updated daily.