Alibaba (BABA) plan is a 'positive catalyst' for the stock over the next 18 months - Benchmark

Alibaba's (NYSE: BABA) plan is "a positive catalyst" for the stock in the next six to 18 months, according to Benchmark analyst Fawne Jiang on Friday.

Along with its earnings, BABA announced a capital management plan while it also revealed upcoming events, including a full spin-off of cloud, IPOs of Cainiao and Freshipoo, and external capital raising of international e-commerce.

The analyst, who has a Buy rating and $180 price target on the stock, told investors in a note that they view the plan as a positive catalyst for BABA, as these capital market actions will trigger the market's acknowledgment on the hidden value of the key strategic assets.

"On the flip side, lack of near Q (F1Q24) guidance and margin uncertainties as a result of pivoting toward growth may reduce near quarters visibility," he added.

Baba shares fell over 5% following its earnings release on Thursday, while it is down a further 1.4% so far on Friday, trading around the $84.50 mark.

By Sam Boughedda

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