After Alibaba (BABA) announced that it would sell its full 78.7% equity interest in Sun Art to DCP Capital for gross proceeds of about $1.5B, Morgan Stanley says this sale is consistent with Alibaba’s effort to downsize non-core businesses. The analyst, who believes such efforts could enhance shareholder returns by year-end, notes that the last 12 months’ buybacks and dividend suggest 10% yield. Morgan Stanley has an Equal Weight rating and $105 price target on Alibaba shares.
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