LB Takeaway | GM, Uber price target cut by double digit, Alibaba is still a "Buy"

Goldman Sachs: Maintain Alibaba's "Buy" rating, target price of HK $163

Based on today's closing price of HK $99.15, this price means that there is still room for 64% growth!

The bank pointed out that Ali will announce its results for the quarter ended June next week, and expects revenue to be flat year-on-year; Client Server revenue fell 9% year over year; Group and China E-commerce Adjusted EBITDA fell 34% year over year to 27.5 billion yuan respectively, and Year over year fell 20% to 40.5 billion yuan. The bank expects Ali to have the opportunity to be included in the Hong Kong Stock Connection Southbound Connection qualification.

The bank pointed out that the focus of monetization of Chinese Internet platforms has shifted from users to ARPUs , and strengthening the discipline of new business investment and strict cost control can re-record profit growth in the third and fourth quarters.

Jefferies: Maintain MINISO's "Buy" rating, target price of HK $21.8

If calculated at today's closing price of HK $12.12, this price means that there is still 80% room for growth!

The bank noted that on July 27, MINISO held a meeting in response to this short report. Management reaffirmed the independence of the company's retail partners and answered questions about the recent acquisition of the joint venture. The bank believes the meeting helped explain and clarify some of the issues raised in the short report, noting that investors wanted more details on how investors should interpret existing data in the market.

The bank continued to point out that the previous short reports on Hengan International and Samsonite hit its share price hard. Therefore, the bank believes that in addition to issuing a detailed clarification statement, MINISO also needs to show evidence of consistent trends in income statement and cash flow to alleviate investors' concerns.

Nomura: Country Garden Services rating downgraded from "buy" to "underweight", target price cut 65% to HK $15.1

At today's closing price of HK $18.56, this price means that there is 19% room for decline.

The report said that due to the slowdown in the growth of management scale and the decline in gross profit margin, the bank expects the company to be inevitably affected by weak sentiment. In addition, the fundamentals of Country Garden's services may show more signs of deterioration, including a possible reduction in M & A projects this year and next, as well as a decline in profit margins. The bank believes that the growth model of previous M & A projects should be changed to focus on third-party business expansion.

Daiwa: Reiterated New Oriental-S "Buy" rating, target price increased from HK $23 to HK $25

If calculated at today's closing price of HK $20.5, this price means that there is still 22% room for growth!

The report said that the company's first-quarter revenue guidance was 10 % higher than the bank's expectations. Due to the improvement in the economic benefits of non-academic tutoring business units, New Oriental raised its profit guidance for fiscal year 2023 and sought to return to profitability in the first quarter and the entire fiscal year. The bank said that New Oriental's factors related to LIVE e-commerce business have continued to be reflected in the stock price, and it believes that the improvement in profitability of each business will support the valuation.

Wedbush: Maintain GM's "outperform" rating, cut price target by 16% to $42 from $50

If calculated at yesterday's closing price of $34.68, this price means that there is still 21% room for growth!

The bank noted that GM's mixed second-quarter results and severe supply chain issues were a clear headwind in the near term. Nonetheless, the bank believes that GM has a strong and detailed vision for electric vehicles in terms of plans for the next decade, and it will invest $35 billion in developing electric or autonomous cars over the next few years, with plans to transition to an all-electric vehicle strategy within the next decade.

MKM: Maintain Uber's "Buy" rating, cut price target by 22% to $32 from $41

If calculated at yesterday's closing price of $23.09, this price means that there is still 39% room for improvement!

The bank noted that Uber underperformed based on investor concerns about the outlook for demand when inflation rises, supply trends under high oil prices and profit potential under reopening headwinds. The bank added that it is bullish on Uber in the medium and long term given its leadership and size in the industry, but at current levels, believes Lyft's share price could see more rebound in the short term.