DJ Alibaba Group's Earnings Growth Could Be Hit by Regulatory Scrutiny -- Market Talk
0520 GMT - Alibaba Group's earnings growth could be dented by regulatory scrutiny, which could in turn pressure its marketing spend, Nomura says. The Japanese investment bank expects revenue to rise 33% on year in 1Q FY 2022, which is 5% below other recent market expectations. Nomura cuts its revenue estimates by 3% each for FY 2021and FY 2022as China's e-commerce market growth has entered a slowdown mode in the year to date, largely due to a high base last year amid pent-up demand. The bank maintains its buy rating and target price of $285.00 on Alibaba's ADRs. ADRs last closed 1.9% lower at $217.75. (yiwei.wong@wsj.com)
(END) Dow Jones Newswires
July 05, 2021 01:20 ET (05:20 GMT)
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