LB Select
2023.12.01 08:44
I'm PortAI, I can summarize articles.

Quick Look from Major Banks | Alibaba's rating and target price have been significantly downgraded! PDD is listed as the preferred choice for Chinese e-commerce companies.

Morgan Stanley has removed Alibaba from its list of Hong Kong stock market concerns, believing that Alibaba is in a declining situation. This is due to 1) slow rebound in China's Customer Management Relationship (CMR) and Alibaba Cloud; 2) Alibaba Cloud's suspension of spin-off, which brings uncertainty to valuation release; 3) lack of catalysts for capital management, as continuous share repurchases and dividends have already been reflected in the price.

Morgan Stanley: Removes Alibaba from the Hong Kong stock watchlist and downgrades its rating from "Buy" to "Equal-weight", lowering the target price for US stocks by 18% to $90.

Based on the latest closing price of $74.8, this price implies a 20% upside potential!

The bank believes that Alibaba is facing a downhill situation due to 1) slow rebound in China's Commercial Management (CMR) and Alibaba Cloud; 2) uncertainty in valuation release due to the suspension of Alibaba Cloud's spin-off; 3) lack of catalysts for capital management, as continuous share buybacks and dividends have been reflected in the price.

Morgan Stanley: Gives PDD an "Overweight" rating with a target price of $181, making it the top choice in the Chinese e-commerce industry.

Based on the latest closing price of $147.44, this price implies a 23% upside potential!

The bank believes that PDD has the most advantageous position in the face of Chinese consumers' increasing sensitivity to cost-effectiveness, as PDD has a deep-rooted concept of "low price" in consumers' minds, which is difficult for competitors to overturn.

Although PDD's "low price" strategy seems simple, it is not easy to implement in practice. PDD enjoys four main advantages: 1) a comprehensive low-cost and high-quality supply chain; 2) traffic algorithms and underlying business logic that focus on high-quality and low-cost products; 3) years of substantial subsidy policies that have successfully established the concept of low prices; 4) better operational efficiency, making it difficult for competitors to replicate or attempt.

The bank estimates that benefiting from a sound business model and changes in consumer behavior, PDD will continue to seize market share in the Chinese e-commerce market, and the market has not yet reflected the price of its cross-border e-commerce business, Temu.

Morgan Stanley: Maintains an "Equal-weight" rating for JD.com with a 9% lower target price of $30.

Based on the latest closing price of $27.43, this price implies a 9% upside potential!

The bank stated that about 80% of securities firms continue to give JD.com a "Buy" rating, believing that its Gross Merchandise Volume (GMV), revenue growth, and profit margin will improve next year. However, the bank expects JD.com to have difficulty executing the "low price" strategy as successfully as PDD. At the same time, PDD and Douyin are becoming more aggressive in the electronics and home appliance sectors, which will put pressure on JD.com's GMV, revenue, and profit margin.

Jefferies: Upgrades Snap's rating from "Hold" to "Buy" and raises the target price by 33% from $12 to $16.

Based on the latest closing price of $13.83, this price implies a 16% upside potential!

The bank believes that this technology company will achieve growth.

UBS: Maintains "Neutral" rating on HKEX with a target price of HKD 296

Based on the latest closing price of HKD 279.8, this price implies a 6% upside potential!

The bank expects HKEX's average daily turnover in November to increase by 21% MoM to HKD 9.5 billion, and also highlights the resilience of its commodity business. The target price remains at HKD 296.

The report mentions that the London Metal Exchange (LME), a subsidiary of HKEX, has won a lawsuit related to nickel trading, which is seen as a positive development for investor sentiment as the uncertainty surrounding it has largely been eliminated. However, the impact on earnings expectations is limited, as analysts had not previously factored in any provisions to account for the uncertain litigation outcome.