Hong Kong-listed shares in Alibaba (9988.HK) rose more than 4% on Monday, while its New York-listed American Depository Shares (ADRs) (BABA) were up by nearly 4% in pre-market trading, after analysts raised their price targets on the Chinese tech giant.
Last week, analysts at Baird reiterated an “outperform” rating on Alibaba and raised their price target from $153 (£113) to $174 per share. Bank of America (BAC) analysts reiterated a “buy” rating on the stock and raised their price target from $168 to $195 per share.
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This came after Alibaba said it would boost AI spending beyond its original commitment of more than $50bn.
Alibaba also announced a software deal with Nvidia (NVDA) to integrate the chip giant's AI development tools used for training for robotics and self-driving cars.
On the London market, shares in AstraZeneca (AZN.L) advanced 1.6% after the pharmaceuticals company announced plans to directly list shares on the New York Stock Exchange (NYSE).
The company said on Monday that it was recommending to shareholders that it replace its current New York listing of ADRs – giving US investors exposure to a foreign company – with a direct listing of ordinary shares.
AstraZeneca said it would be maintaining its status as a UK-listed and headquartered company, as well as keeping shares listed in Stockholm.
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Lale Akoner, global market analyst at eToro, said: “The move is aimed to attract a wider base of investors as Astra pursues strong growth over the next decade. By broadening its investor reach in the US, Astra is looking to secure the capital and visibility needed to fund its next wave of medicines and hit its long-term sales targets.
“Importantly, this dual listing isn’t about shifting away from London but securing a truly global platform. Backed by a blockbuster cancer portfolio and a pipeline of promising new treatments, we think AstraZeneca is well positioned for steady earnings growth.
“With sights set on reaching $80bn in sales by 2030, the US listing strengthens its ability to deliver for both patients and shareholders.”
Another UK-listed pharma stock in focus on Monday morning was GSK (GSK.L), with shares rising 3.6% to the top of the FTSE 100 (^FTSE), after announcing a new CEO.
GSK said current CEO Emma Walmsley would be replaced by Luke Miels, who would assume full responsibilities of the role on 1 January.
