UOB Kay Hian analyst Julia Pan has maintained her “buy” call on e-commerce giant Alibaba with a maintained target price of US$311 ($423.89).

“Our target price implies 31 times FY21F forward price-to-earnings ratio (P/E ratio), or 0.8 standard deviation (SD) above its 5-year historical mean, on the back of a 25% earnings per share (EPS) compound annual growth rate (CAGR) in FY21-24,” says Pan in a report dated Sept 30.

In 2020, China’s retail platforms – including Alibaba – saw sustained improved user engagement despite the Covid-19 outbreak.

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