Political risks could cap Alibaba valuation near term, says Stifel

Alibaba Group Holding on Friday reported stronger than expected fiscal Q4 results with revenue up 22% year-over-year, Stifel analyst Scott Devitt tells investors in a research note. Further, quarter to date trends have demonstrated a "healthy rebound" from the pandemic as lockdowns have eased, adds the analyst. Devitt keeps a Buy rating on Alibaba shares with a $230 price target. The stock closed Friday down 6% to $199.70. The company guided fiscal 2021 revenue growth to 28%, in line with expectations, but management noted continuing uncertainty stemming from COVID-19 and pointed to U.S., China tensions adding additional uncertainty beyond the pandemic, says the analyst. Devitt believes political risks are heightened and could limit Alibaba's valuation multiple in the near-term.