Goldman Sachs is bullish on e-commerce in China, naming it as one of its "most preferred" areas within China's internet sector. In a Sept. 3 note, the bank pointed to upgrades in advertising technology and to a rise in consumption into the end of the year. The bank said that China's e-commerce sector posted a "solid" revenue beat following strong performance in the 6.18 shopping event — the nation's second-largest online annual shopping festival.
Goldman said that, in the long run, a valuation multiple re-rating for the stock will be driven by several factors that include management's "proactive steps" to crystallize shareholder value, such as ongoing buybacks, growth drivers across its Alibaba Cloud business, and more. Goldman gave a target price of $138 for Alibaba's U.S.-listed shares, and 134 Hong Kong dollars for its Hong Kong-listed shares. That represents a potential upside of around 45% for both.