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."

For an analyst ratings summary and ratings history on Alibaba click here. For more ratings news on Alibaba click here.

Shares of Alibaba closed at $79.47 yesterday.

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