- Truist analyst Youssef Squali believed that the slowdown in online sales would affect Chinese e-commerce giant Alibaba Group Holding Limited (NYSE:BABA).
- Squali maintained a Buy rating on Alibaba and cut its price target from $180 to $132 (48.6% upside) a week before Alibaba's earnings results.
- Squali believes the company's fourth-quarter results and any short-term guidance are likely to point to continued challenges across its segments as it deals with China's slowing economy amid ongoing Covid-19 lockdowns.
- Also Read: Alibaba, Tencent To Post Lack-Luster Quarterly Results As Domestic Regulatory Crackdown Takes A Toll
- Squali estimated that China's commerce revenue would slow to 4% year-over-year growth, the lowest in 10 years.
- Alibaba's massive dependence on apparel and cosmetics to drive revenue was the hardest hit segment making prospects more challenging for Alibaba.
- Squali looked forward to the government's assurances of measures to boost the economy for better clarity.
- JP Morgan Chase & Co (NYSE:JPM) recently upgraded Alibaba and other Chinese stock ratings.
- Price Action: BABA shares traded higher by 0.44% at $87.69 on the last check Thursday.
