LB Takeaway | Alibaba still has 67% upside? Xiaomi's price target cut by 27%

Macquarie: Alibaba-SW'outperform 'rating reiterated, price target raised 2% to HK $148

Based on today's closing price of HK $88.8, this price means that there is still 67% room for growth!

The bank believes that Ali's first fiscal quarter is off to a good start, with adjusted net profit 12% higher than market expectations. Since the end of last year, the platform has collectively cut expenses, and Ali is committed to cost optimization and restoring profit margins in the next few quarters, which is a positive revelation for the entire industry. It is expected that profits in the second half of 2022 will have the opportunity to return to the right track.

Under the trend of steady recovery, the transaction value of Tmall physical goods fell by a single digit year-on-year during the quarter, slightly better than the 10 % decline expected by the market, the bank said. Management emphasized that the company's core asset is a strong share of users' minds, which can still support stable organic traffic performance in the weak macro environment and supply chain disruptions. Alibaba's adjusted EBITA in the first fiscal quarter reached RMB 34 billion, far exceeding the bank and market expectations, and noted effective cost savings in key areas. However, the cloud computing and international business units slowed during the quarter and the near-term outlook was less visible.

CLSA: Downgraded Xiaomi's rating from "buy" to "outperform", and lowered its price target by 27% to HK $14.6 from HK $20

If calculated at today's closing price of HK $11.78, this price means that there is still 24% room for growth!

The bank expects Xiaomi Group-W's business performance in the second quarter to be severely affected by weak consumer confidence in the Chinese mainland and Europe. It is expected that revenue will drop by 20% year-on-year to RMB 70 billion, of which smartphone revenue will drop by 28%; overseas sales of the Internet of Things It is also expected to decline, and internet services are affected by the downturn in the mainland advertising market.

Taking into account the decline in revenue and research and development investment in electric vehicles, the bank expects Xiaomi's adjusted net profit in the second quarter to fall by 69% year-on-year to 1.9 billion yuan. Sales are expected to remain weak in the second half of the year amid global macroeconomic difficulties.

Goldman Sachs: Maintain "Buy" rating on the Hong Kong Stock Exchange, cut target price by 5% to HK $451 from HK $475

If calculated at today's closing price of HK $356.2, this price means that there is still 27% room for growth!

The bank said that the earnings per share forecast for the second quarter of the Hong Kong Stock Exchange is lower than the market consensus. The main difference is in investment income and IPO income. The reduction in the target price is mainly due to the sluggish trading volume performance this year.

The bank lowered the HKEx's earnings per share forecast for fiscal year 22/23/24/25 by 3%/4%/3%/5% respectively. The bank still expects the change in EPS in the first quarter to have bottomed out and show the same change in the second quarter/after, but believes that HKEx's EPS will return to positive growth in the fourth quarter of this year and in 2023 Strong growth of about 35% in fiscal year, thanks to positive performance in terms of volume growth and ADR return.

Susquehanna International: Twitter downgraded from "positive" to "neutral", price target lowered by 10 % from $50 to $45

Based on the previous trading day's closing price of $42.52, this price means that there is still 6% room for improvement!

The bank cited "uncertainty and disruption" related to Tesla CEO Elon Musk's pending acquisition as the reason for the downgrade. In addition, Twitter's recent financial results have limited visibility into business trends.

Deutsche Bank: maintain Nikola's "hold" rating, raises price target by 14% to $8 from $7

Based on the previous trading day's closing price of $8.05, this price means that it is basically flat.

The bank said it continued to be encouraged by the progress of Nikola's operations as the company ramped up production, established partnerships for new point distribution stations and increased vertical integration. However, analysts also noted that the company's economic conditions "will get worse before they get better", especially given the increase in spending and the company's acquisition of battery maker Romeo in an all-stock $144 million deal. Short-term pressure from the third and fourth quarters.

Barclays: Maintain Doordash "hold-and-see" rating, raises price target by 12.5% to $90 from $80

Based on the previous trading day's closing price of $80.29, this price means that there is still 12% room for improvement!

DoorDash emphasized that consumer spending frequency has held up very well, and while there have been some small price cuts on the commodity side, the overall unit economy remains strong, the bank said.

Bank of America: Maintain Beyond Meat's "underperform" rating, cuts price target by 50% to $ 10 from $20

If calculated at the previous trading day's closing price of $38.26, this price means that there is 74% room for decline.

Beyond Meat reported a more severe second-quarter loss than the bank had estimated and lowered its sales guidance for 2022. The bank noted that it lowered its sales forecast for Beyond Meat's fiscal year 22-24 following the results release.

Morgan Stanley: maintain iQIYI "underweight" rating, price target raised 6% to $3.50 from $3.30

Based on the previous trading day's closing price of $3.91, this price implies a 10 % downside.

The bank expects iQIYI's total revenue to fall 12% year over year in the second quarter, as subsidy revenue rose 6% year over year during the period, dragged down by weak advertising revenue (down 41% year over year).

The bank expects the company to record sequential month-on-month improvements in the 3-4 quarters, mainly due to the improvement in macro, channel and ARPU (average revenue per user) growth, but the bank expects the advertising business to still struggle to recover.