{"id":29023,"date":"2023-06-29T06:11:46","date_gmt":"2023-06-29T10:11:46","guid":{"rendered":"https:\/\/ifintechworld.com\/uncategorized\/4-big-analyst-cuts-alibaba-a-potential-value-trap-says-bernstein\/"},"modified":"2023-06-29T06:11:48","modified_gmt":"2023-06-29T10:11:48","slug":"4-big-analyst-cuts-alibaba-a-potential-value-trap-says-bernstein","status":"publish","type":"post","link":"https:\/\/ifintechworld.com\/?p=29023","title":{"rendered":"4 big analyst cuts: Alibaba a potential ‘value trap,’ says Bernstein"},"content":{"rendered":"
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\u00a9 Reuters. <\/span>
\n<\/i>\n<\/div>\n

Here is your Pro Recap of the biggest analyst cuts you may have missed since yesterday: downgrades at Uber, Alibaba, Veeva Systems, and Walgreens Boots Alliance.<\/p>\n

InvestingPro subscribers got this news first. Never miss another market-moving headline.<\/p>\n

Alibaba cut to Market Perform on ‘value trap’ risk<\/strong><\/h2>\n

Bernstein moved to a neutral stance, downgrading Alibaba <\/span><\/span> (NYSE:) to Market Perform from Outperform with a price target of $98.00 (from $130.00) despite the stock’s “very cheap” valuation.<\/p>\n

The firm cited concerns about a potential “value trap” risk as quarterly comps are about to get harder from here. According to the firm, Alibaba’s problem goes beyond the lack of user traffic and includes the issue of merchant crowding, leading to increased search costs and putting pressure on merchant ROI.<\/p>\n

\u201cWe’re unconvinced that low multiples and modest EPS accretion can drive durable share price performance if the competitive problem in core e-commerce remains unresolved,\u201d Bernstein concluded.<\/p>\n

Uber trimmed at Daiwa Securities<\/strong><\/h2>\n

Uber Technologies (NYSE:) shares fell more than 1% pre-market today after Daiwa Securities downgraded the company to Outperform from Buy with a price target of $51.00 (from $42.00).<\/p>\n

Despite the firm increasing its estimates and price target, it cut the company’s rating due to strong outperformance in stock, which is up 81% YTD, versus a 13% increase in the .<\/p>\n

The increase in price target reflects higher EBITDA estimates and lower weighted average cost of capital (WACC). The firm\u2019s 2024 adjusted EBITDA was raised to $5.2 billion from $5B prior, reflecting higher bookings growth at Mobility operations and increased profitability at Delivery. Meanwhile, a consistent free cash flow, potential S&P 500 inclusion, and recognized Mobility & Delivery synergies contributed to reducing the WACC to 10.5% from the previous 11.5%.<\/p>\n

The firm believes Uber\u2019s global scale and cross-platform synergies make it best positioned to capitalize on increasing penetration while navigating potential downturns and regulatory cost pressures.<\/p>\n

2 more downgrades<\/strong><\/h2>\n

Veeva Systems (NYSE:)<\/strong> shares dropped more than 3% yesterday after Morgan Stanley downgraded the company to Underweight from Equalweight with a price target of $181.00.<\/p>\n

Deutsche Bank downgraded Walgreens Boots Alliance (NASDAQ:)<\/strong> to Hold from Buy and cut its price target to $34.00 from $46.00.<\/p>\n

Shares plunged more than 9% yesterday after the company reported soft Q3 and cut its guidance.<\/p>\n

Get ready to supercharge your investment strategy with our exclusive discounts.<\/p>\n

Don’t miss out on this limited-time opportunity to access cutting-edge tools, real-time market analysis, and expert insights. Join InvestingPro today and unlock your investing potential. Hurry, the Summer Sale won’t last forever!<\/p>\n

\"summer<\/p>\n<\/div>\n

Read the full article here<\/a><\/p>\n","protected":false},"excerpt":{"rendered":"

\u00a9 Reuters. Here is your Pro Recap of the biggest analyst cuts you may have missed since yesterday: downgrades at Uber, Alibaba, Veeva Systems, and Walgreens Boots Alliance. InvestingPro subscribers got this news first. Never miss another market-moving headline. Alibaba cut to Market Perform on ‘value trap’ risk Bernstein moved to a neutral stance, downgrading […]<\/p>\n","protected":false},"author":1,"featured_media":29024,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"video","meta":{"footnotes":""},"categories":[1],"tags":[83],"class_list":["post-29023","post","type-post","status-publish","format-video","has-post-thumbnail","hentry","category-uncategorized","tag-featured","post_format-post-format-video"],"yoast_head":"\n4 big analyst cuts: Alibaba a potential 'value trap,' says Bernstein | iFintechWorld<\/title>\n<meta name=\"description\" content=\"\u00a9 Reuters. 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