Jefferies: Alibaba Poised for Growth Amid Macro Challenges

Jefferies' report highlights Alibaba's strategic focus on user experience and new measures like updated traffic allocation, free refunds, and service fees. These are expected to improve Customer Management Revenue (CMR) and narrow the growth gap between GMV and CMR in the second half of FY25.

Jefferies also sees potential catalysts including Alibaba's upcoming dual listing in Hong Kong or inclusion in the Hong Kong Stock Connect, both expected to positively impact the stock. Additionally, Alibaba's significant buybacks in H1 2024 add to its appeal.

The broker maintains a Buy rating with a target price of $116 for $Alibaba (BABA.US)$ and HK$112 for $BABA-W (09988.HK)$.