Credit Suisse: Alibaba-W's convertible bond reflects confidence in future prospects, target price HKD 172
Fidelity released a research report stating that Alibaba-W (09988) announced plans to issue USD 3.2 billion in zero-coupon convertible bonds, reflecting its confidence in future prospects. The funds raised will mainly be used for cloud computing and international business operations. Compared to existing cash reserves, issuing convertible bonds can reduce funding costs. Its target price for Alibaba is HKD 172, with a target price of USD 178 for US stocks. Based on Alibaba's market capitalization, Fidelity estimates the dilution impact to be limited. As mentioned in recent reports, the cloud computing business is expected to maintain rapid growth driven by AI demand, while the pop-up store business will release synergies as user experience improves
According to Zhitong Finance APP, Jefferies released a research report stating that Alibaba-W (09988, BABA.US) announced plans to issue $3.2 billion in zero-coupon convertible bonds, reflecting its confidence in future prospects. The funds raised will mainly be used for cloud computing and international business operations. Compared to existing cash reserves, issuing convertible bonds can reduce funding costs. Jefferies has set a target price of HKD 172 for Alibaba and a target price of USD 178 for its U.S. stock. Based on Alibaba's market capitalization, Jefferies estimates that the dilution impact will be limited. As mentioned in recent reports, the cloud computing business is expected to maintain rapid growth driven by AI demand, while the pop-up store business will release synergies as user experience improves
