alibaba group holding limited baba analysts rerated the stock after the company shared its ipo plans for the cloud division and others posted upbeat fourthquarter results truist analyst youssef squali reiterated a buy rating on the stock with a price target of 130 the analyst maintained a constructive view on baba whose 4q results reflect suitable cost containment amid improving demand in china and overseas gmv growth was positive in march and april for china commerce however the competition in both commerce  cloud is likely to keep investments high and margins in check short term the analyst expects the major reorganization to increase accountability and drive operating and financial performance in the mid and long term near term it should enact several catalysts including clouds upcoming private capital raise and subsequent spinoff and cainiao  freshippo ipos which should create material shareholder value while the lack of nearterm guidance from management and the commentary around the need to continue to invest aggressively to regain share in commerce and cloud are likely to weigh on the stock nearterm the analyst sees the companys reorganization as an even bigger driver of value creation over time alibabas complete spinoff of cloud ipos of cainiao and freshippo and external capital raising of international ecommerce will serve as a positive catalyst for baba stock in the next 618 months as these capital market actions will trigger the markets acknowledgment of the hidden value of the critical strategic assets which ultimately would swing the market to evaluate baba stock on sumoftheparts valuation conversely a lack of nearquarter guidance and margin uncertainties due to pivoting toward growth may reduce nearquarter visibility argus analyst had a hold rating on the stock under the plan disclosed in march the six new business units will be more distinct with individual ceo and a board of directors except for taobao tmall business group representing alibabas core china commerce business the new units will have the flexibility to raise outside capital and potentially seek an initial public offering baba has underperformed recently due to increased competition political pressures and macroeconomic softness the initial stock surge on the reorganization news reversed as investors considered the implications of any reorganization it will incur costs challenges and distractions in implementing the overhaul goldman sachs had a buy rating on the stock post 4q backed by its focused threeyear plan for taobaotmalls comeback and cloud distribution price action baba shares traded lower by 132 at 8465 on the last check friday