Big Moves | Alibaba, NVIDIA, Netflix, Meta Platforms! Target prices all raised!
According to the evaluation by Macquarie, the market value of Alibaba's core six departments, plus the potential listing of ANT GROUP and Hema Fresh, could reach USD 399 billion to USD 658 billion. This includes a total of four departments, including ANT GROUP, which are expected to be listed in the next 2-6 quarters. The current market price discount rate is 39-63%.
Macquarie: Gives Alibaba a "Outperform" rating, with a target price raised slightly from HKD 151.4 to HKD 152.5
Based on the latest closing price of HKD 90.35, this price implies a 69% upside potential!
After Alibaba's restructuring business announcement, Macquarie reassessed the potential value and opportunities of its various businesses. The bank believes that the current market price of Alibaba as a comprehensive stock has a discount rate of 39-63%, which is much higher than SoftBank's average discount rate on net asset value, reflecting a significant potential for future increase in Alibaba's stock. Using the Sum of the Parts (SoTP) valuation method, the bank adjusted the target price to account for Alibaba's recent share buybacks and the valuation of Ant Group.
According to the bank's assessment, the market value of Alibaba's core six divisions, plus potential listings of Ant Group and Hema Fresh, could reach USD 399 billion to USD 658 billion (equivalent to approximately HKD 31 trillion to HKD 51.3 trillion), including four divisions including Ant Group, which are expected to be listed in the next 2-6 quarters. The current market price has a discount rate of 39-63%, which is significantly higher than SoftBank's discount rate. Alibaba's cloud business is the main variable, with the potential to increase Alibaba's valuation by up to USD 26 per share.
Morgan Stanley: Gives Xiaomi Corporation an "Overweight" rating, with a target price of HKD 15
Based on the latest closing price of HKD 11.16, this price implies a 34% upside potential!
The bank stated that Xiaomi Corporation has benefited from its newly launched Redmi series, which has increased its global market share to 13% in the second quarter, ranking third and surpassing the 11% in the first quarter. This indicates that Xiaomi's smartphone deliveries in the second quarter may reach 32 million to 34.5 million units, an increase of 5% to 13% on a quarterly basis, providing a positive signal and potentially reaching a turning point.
The report pointed out that according to preliminary data from Canalys, global smartphone shipments in the second quarter declined by 11% compared to the same period last year, narrowing the decline from 13% in the first quarter, but still worse than the bank's expected decline of 7.9%.
The bank cited Canalys' statement that although overall demand in the second quarter remained weak, the decline in smartphone shipments has improved because most suppliers' inventories have returned to a healthier level, and the macroeconomic conditions are stabilizing. OPPO, vivo, Transsion, and Xiaomi have been expanding their market share in the price range below $200 through stronger sales incentives and more proactive retail practices.
In addition, there are signs that suppliers are preparing for the future market recovery, supporting the bank's view that destocking is on track and will be basically completed by the end of the second quarter. However, the bank believes that the extent of the recovery in the second half of the year is still unclear.
Bank of America: Reiterates "Buy" rating on NVIDIA, raises target price by 10% to $550
Based on the latest closing price of $474.94, this price implies a 16% upside!
The bank stated that the spending on AI by cloud industry and enterprises is driving the demand for NVIDIA chips. Currently, NVIDIA holds a market share of approximately 75% in the advanced AI chip market. The bank pointed out that investment in AI infrastructure is still in the early stages, with only 10% of cloud servers equipped with chips suitable for accelerating AI projects. They are optimistic about the future demand from data centers.
Jefferies: Maintains "Buy" rating on Netflix, raises target price by 18% to $520
Based on the latest closing price of $474.8, this price implies a 10% upside!
The bank stated that the upward revision of the target price is due to better-than-expected pricing for EBITDA growth in the second quarter. They mentioned that combating password sharing and video-on-demand advertising will drive the next round of user growth. In addition, strict control over content expenses will drive profit margins and free cash flow growth.
Jefferies: Raises META target price by 28.5% to $360
Based on the latest closing price of $312.05, this price implies a 15% upside!