DJ Alibaba Group's Antitrust Fine Could Signal End to Uncertainty -- Market Talk
0634 GMT - Alibaba Group's $2.8 billion antitrust fine by Chinese regulators could signal an end to uncertainty for the e-commerce company, UOB Kay Hian says. Moving on, Alibaba will likely focus on improving customer experience and lowering the entry barrier for merchants, UOB Kay Hian says, adding it could ramp up its investment in the community purchase segment this year. The brokerage raises its FY 2022 revenue forecasts for the company by 6.0%, thanks to a better-than-expected recovery in Alibaba's e-commerce sales. It maintains a buy rating but cuts the target price on Alibaba's ADRs to $334 from $355 as its profit margin may contract on investment in new initiatives. Alibaba's ADRs last closed 1.1% lower at $239.23. (yiwei.wong@wsj.com)
(END) Dow Jones Newswires
April 15, 2021 02:34 ET (06:34 GMT)
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