Analysis Report | Pinduoduo's target price significantly raised! Alibaba still has 60% upside potential?
Morgan Stanley raises Pinduoduo's target price by 28.5% to $126! Despite the intensifying market competition, Pinduoduo's encouraging profit growth in its domestic business sector; while its international business division, Temu, seeks to leverage its advantages as a new growth engine in the process of global business expansion.
Guotai Junan Securities: Maintains "Buy-A" rating for Alibaba, target price of HKD 144
Based on the latest closing price of HKD 90.2, this price implies a 60% upside potential!
The bank expects Alibaba's FY2024/25 revenue to grow YoY by 12.1%/11.5%, with adjusted EBITA of RMB 177.5/208.6 billion and a target price of HKD 144. In 1QFY24, the company's total revenue increased YoY by 13.9% to RMB 234.2 billion, and adjusted net profit attributable to ordinary shareholders increased YoY by 42.7% to RMB 44.7 billion, both exceeding market expectations.
Alibaba's user-focused strategy implemented this year has shown initial results, with the core e-commerce business gradually recovering. At the same time, operational efficiency is continuously optimized through cost reduction measures, and the profit margins of multiple business lines have significantly improved. In addition, the orderly listing of various business groups helps stimulate organizational vitality and promote business agility.
Bank of America: Maintains "Buy" rating for Bank of China (Hong Kong), lowers target price by 7% to HKD 30.12 from HKD 32.5
Based on the latest closing price of HKD 21.8, this price implies a 38% upside potential!
The bank stated that although Bank of China (Hong Kong) may have reached its peak net interest margin and faces uncertainties in asset quality, its valuation remains low considering a forecasted price-to-book ratio of 0.7 times and a dividend yield of 7.4%. Bank of America is more optimistic about Bank of China (Hong Kong) compared to Hang Seng Bank.
Bank of America: Maintains "Buy" rating for CITIC Securities, lowers target price by 2% to HKD 17.85 from HKD 18.3
Based on the latest closing price of HKD 15.08, this price implies an 18% upside potential!
The bank stated that due to the tightening policy on securities refinancing, it believes that the group will not conduct refinancing this year, and its net stable funding ratio is 134%, still above the cautionary level of 120%. In addition, if regulatory authorities relax leverage regulations, the group may benefit from it.
Macquarie: Maintains "Outperform" rating for Pinduoduo, raises target price by 28.5% to USD 126 from USD 98
Based on the latest closing price of USD 98.97, this price implies a 27% upside potential!
The bank stated that Pinduoduo's second-quarter revenue grew YoY by 66% to CNY 52.3 billion, exceeding the bank's expectations by 17% and the market's expectations by 21%. In addition, the adjusted net profit was CNY 15.3 billion, 39% higher than market expectations.
The report pointed out that although market competition has become more intense, Pinduoduo's profit growth in the domestic business sector is encouraging. Meanwhile, the international business unit, Temu, has advantages in seeking global business expansion.
JPMorgan: Raises Salesforce's target price from $230 to $240, a 4% increase
If calculated based on the latest closing price of $221.46, this price implies an 8% upside potential!
The bank praised the company's profit margin and free cash flow, suggesting that the future free cash flow could reach $10 per share.
Analysts pointed out that some investors still have concerns about the slowdown in certain Salesforce businesses, such as MuleSoft and Slack. However, the company's business model is undergoing significant changes, even in a challenging macro environment that affects all software companies.
As the company shifts towards a macro-aligned strategy and injects disruptive generative AI capabilities into cloud computing, the stock price is expected to rise above its current level.