＜Research＞UBS: Alibaba (BABA.US) Accelerates Buybacks to Back Stock Price when It Falls

　　UBS noted in a report that BABA-SW (09988.HK) +0.100 (+0.137%) Short selling $234.80M; Ratio 10.506% (BABA.US) has spent US$5.8 billion to buy back the equivalent of 77 million American Depositary Shares (ADSs) in 1FQ24 ended June. The repurchase programme, which runs until March 2027, has US$26.1 billion of repurchase capacity remaining.

　　According to the broker, BABA's accelerated pace of repurchases continues to far surpass expectations. The group's US$5 billion convertible note issue in May should demonstrate management's solid execution of its commitment to shareholder returns, potentially easing investor concerns.

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　　Looking ahead, while BABA is undergoing a business transformation, its capital actions such as continued accelerated buybacks and possible inclusion in the Southbound Stock Connect should provide downside support to the share price, the broker believed.

　　UBS considered BABA's current valuation modest at 9x FY25 P/E. The broker gave the group's US shares a target price of US$105 with a Buy rating.

　　(HK stocks quote is delayed for at least 15 mins.Short Selling Data as at 2024-07-04 16:25.) (Real-time Streaming US Stocks Quote; Except All OTC quotes are at least 15 minutes delayed.)

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