Alibaba’s Business Fundamentals to Drive China’s Economic Recovery, Citi Analysts Say

July 6, 2022

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Alibaba’s ($NYSE:BABA) Business Fundamentals to Drive China’s Economic Recovery, Citi Analysts Say The fundamentals of Alibaba’s business and by extension, its share price, are likely to correlate fairly closely to the pace of China’s economic recovery in the second-half, according to investment firm Citi.Analyst Alicia Yap notes that Alibaba’s management is focused on driving “high quality” revenue growth and continuing to optimize its cost structure. As such, the firm estimates that profit “could potentially improve more than expected.””Together with $12Boutstanding in repurchase obligations, solid cash flow generation ability, and continued advancement of its technology infrastructure, we recommend investors to revisit BABA as a core investment,” Yap wrote in a note to clients.Yap maintained a buy rating on Alibaba shares, but tweaked the price target to $172 from $176, after taking into account earnings revisions. As such, the firm has a positive outlook on the stock. Do you think this will affect ALIBABA market and earnings in the long term? Yes, the analysts’ positive outlook on Alibaba’s stock is likely to have a positive impact on the company’s market performance and earnings in the long term.

Market Reaction

On Tuesday, Alibaba stock opened at $114.5 and closed at $120.1, up by 3.6% from its previous closing price of $116.0. Alibaba’s stock price has been on the rise in recent days, as investors anticipate the company’s upcoming earnings report. Analysts expect Alibaba to report strong results for the quarter, driven by continued growth in its core e-commerce businesses.

VI Analysis

The company’s fundamentals reflect its long term potential. Below, an analysis of Alibaba is made simple by VI app. Based on VI’s Risk Rating, Alibaba is a medium risk investment in terms of financial and business aspects. You can check out what the business and financial areas are that present potential risks on our website.



The firm’s stock price rose 3.6% the day after the analysts released their note. Citi’s analysts said that Alibaba is well-positioned to benefit from the Chinese government’s focus on stimulating consumption and driving economic growth. They also predicted that Alibaba will continue to gain market share in China’s e-commerce market. Alibaba is a great long-term investment for those looking to profit from China’s continued economic growth.

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