Big Moves | Alibaba May Increase Dividend Significantly, Stock Price Could Rise 70%? BIDU-SW Target Price Gets Raised!
According to Morgan Stanley, Alibaba may "significantly increase" dividends, share buybacks, and equity investments in the next 6 to 12 months, driven by stable core e-commerce, the release of free cash flow from restructuring, and the potential monetization of non-core businesses. The total cash available for distribution over the next three years could reach $200 billion.
Morgan Stanley: Upgrades Alibaba to "Overweight" with a target price of $150
If calculated at the latest closing price of $88.76, this price implies a 69% upside!
The bank pointed out that Alibaba may "significantly increase" dividends, share buybacks, and equity investment allocations in the next 6 to 12 months, and the total cash available for distribution in the next three years may reach $200 billion, driven by stable core e-commerce, the release of free cash flow from restructuring, and the potential monetization of non-core businesses.
In addition to the current cash balance of $60 billion, the restructuring can also release 40% or $90 billion of free cash flow. Assuming that the "5+N" 30% monetization and equity investment can raise an additional $50 billion in cash.
Daiwa: Raises BIDU-SW's target price by 5% to HKD 210
See "Wall Street Praises 'AI+ Intelligent Cloud': Bullish on BIDU-SW, Inflection Point of Cloud Business is Coming!" for details.
Daiwa: Reiterates "Buy" rating on BYD with a target price of HKD 349
If calculated at the latest closing price of HKD 239.6, this price implies a 46% upside!
The bank expects BYD's new energy vehicle sales to reach 3 million units in 2023, a year-on-year increase of 62%. Export sales may become the main driving force in 2023, reaching 300,000 units, while 2022 is 55,000 units.
The report stated that BYD maintained a strong order backlog in the first quarter of 2023 and a healthy inventory level. Management expects that store traffic and delivery volume will improve in May compared to April, and sales are expected to reach 230,000 units in May. As the supply chain shortage issue has been resolved this year, management guided that capital expenditures in 2023 will slightly decrease.
In addition, high-end brands will boost profit margins, which is conducive to the average selling price and profit margin of the automotive sector. Management guided that the net profit margin per vehicle of the Denza brand will be about 20% in the second quarter of 2023, and the profit per vehicle will be about RMB 70,000. The delivery volume in May was about 13,000 units.
Goldman Sachs: Maintains Miniso's "Buy" rating with a target price raised by 2% to HKD 46.
If calculated at the latest closing price of HKD 33.8, this price implies a 36% upside! The company achieved a net profit of RMB 483 million by the end of March 2023, exceeding the bank's expectations. The company's accelerated pace of opening new stores in mainland China has boosted the confidence of retail partners, and the increase in the proportion of first- and second-tier cities has also proven the success of its brand upgrade strategy.
JPMorgan: Maintains "Overweight" rating on Netflix, target price of $380
At the latest closing price of $333.75, this price implies a 14% upside potential!
The bank stated that paid sharing services and advertising are still huge opportunities for Netflix and important drivers of the company's future revenue and subscription growth. However, Netflix may delay its paid sharing services due to the Hollywood screenwriters' strike, which is expected to further delay the company's revenue and user growth.