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UBS cuts Alibaba Health target price to HK$2.8, maintains 'sell' rating
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UBS has issued a report on Alibaba Health (00241), lowering its target price from HK$3.1 to HK$2.8 and maintaining a 'sell' rating. The new target price is based on 17 times the estimated adjusted earnings per share for fiscal year 2028, down from 19 times previously, and slightly below the average for internet healthcare peers, reflecting the company's weaker earnings growth outlook. UBS now forecasts revenue growth of 7-10% for fiscal year 2027, down from its previous estimate of 10-15%, primarily due to industry challenges that have slowed growth in the health supplements and medical equipment businesses, as well as the company's reduction in price discounts. The bank has also lowered its earnings per share forecasts, which are slightly below consensus estimates. It projects EPS of RMB 0.13 for fiscal 2027 and RMB 0.15 for fiscal 2028, compared to consensus estimates of RMB 0.14 and RMB 0.16, respectively.
Source report
UBS has released a report lowering the target price for Ali Health (00241) from HK$3.1 to HK$2.8, while maintaining a "Sell" rating. The new target price is based on 17 times the adjusted earnings per share for the 2028 fiscal year, down from the previous 19 times. This valuation is slightly below the average for internet healthcare peers, reflecting the company's weaker earnings growth outlook.
Key Forecast Adjustments
- Revenue growth: UBS now expects Ali Health's revenue to grow by 7–10% in the 2027 fiscal year, down from the previous forecast of 10–15%. This revision primarily reflects industry challenges, including slower growth in the health supplements and medical equipment segments, as well as the company's reduction in price discounts.
- Earnings per share (EPS) forecasts: The bank has also lowered its EPS estimates for Ali Health, which are now slightly below the average consensus among peers:
- 2027 fiscal year: RMB 0.13 per share (vs. peer average of RMB 0.14)
- 2028 fiscal year: RMB 0.15 per share (vs. peer average of RMB 0.16)
Source
智通财经网Neutral / independent
Part of this Story
Alibaba Health Faces Multiple Analyst Downgrades on Slowing Growth Outlook