＜Research＞Citi: Alibaba's AliExpress, Brazil's Magalu Co-op Is Positive Strategic Move

　　In its research report, Citi Research noted that it regards the strategic partnership between Alibaba (BABA.US) s AliExpress and Brazilian digital retail platform Magalu as an aggressive strategic deployment by the company's AIDC to strengthen the attractiveness of AliExpress' platform services in Brazil, so as to cope with the escalating competition after the entry of Temu, and the established position of Shopee in Brazil.

　　With the launch of AliExpress‘ Choice service on Magalu's e-commerce platform, it will help broaden AliExpress’ user penetration and juice growth in GMV, Citi said. With the sale of Magalu's 1P products, AliExpress will enrich its product offerings in Brazil, luring more local merchants to boost transactions and raise user loyalty.

　　The broker believed that by partnering with local companies, AliExpress can also mitigate potential future risks if Brazil imposes new regulatory restrictions on the operation of foreign e-commerce platforms.

　　Citi maintained a Buy rating on Alibaba with a TP of $122.

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