UOB Kay Hian Research analyst Julia Pan has maintained “buy” on Alibaba Group, albeit with a lower target price of US$308 ($415.90) from her previous estimate of US$313.

The lower target price implies 31 times FY2022 forward price-to-earnings (P/E) against 22% earnings per share (EPS) compound annual growth rate (CAGR) from FY2022 to FY2025, Pan writes in a July 9 report.

“The company is trading at 19.6 times 12-month forward P/E, 1 standard deviation (s.d.) lower than the historical mean of 25 times,” she adds.

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