Alibaba Group Holding Limited BABA Analysts rerated the stock after the company announced its cloud IPO plans, while others expressed optimism Fourth Quarter Results.

trusty Analyst Youssef Squali reiterated his buy recommendation for the stock Price target of $130.

The analyst maintained his constructive view on BABA, whose fourth-quarter results reflect reasonable cost containment amid rising demand in China and abroad. GMV growth for China Commerce was positive in March and April.

However, competition in both commerce and the cloud should keep investments high and margins under control in the near term. The analyst believes that the extensive restructuring will increase accountability and improve operational and financial performance in the medium and long term.

In the near term, there should be several catalysts, including Cloud’s upcoming private capital raise and subsequent spin-off, as well as the Cainiao and Freshippo IPOs, which should create significant shareholder value.

While management’s lack of near-term guidance and comments on the need to continue investing aggressively to win back shares in commerce and cloud are likely to weigh on the stock in the short-term, the analyst sees the company’s restructuring as an even bigger driver of value creation over the course of the year Time.

Benchmark Analyst Fawne Jiang maintained a buy rating with a target price of $180.

Alibaba’s full spin-off of Cloud, Cainiao and Freshippo IPOs, and external capital raising for international e-commerce will serve as a positive catalyst for BABA stock over the next 6 to 18 months as these capital market actions will spark market recognition of the hidden value of the critical strategic assets which would ultimately result in the market valuing BABA stock by the sum of the parts.

Conversely, a lack of guidance for the next quarter and margin uncertainty due to the focus on growth may affect visibility for the next quarter.

argus The analyst gave the stock a “Hold” rating. According to the plan announced in March, the six new companies are to…