Cantor, Wedbush And Others Weigh In On Alibaba Group Holding Ltd
In the past week, Cantor Fitzgerald, Wedbush, Atlantic Equities and CRT Capital have initiated coverage on the e-commerce giant.
Cantor holds a Buy rating on Alibaba with a price target of $90.00.
In a note, the firm shared the following outlook: "We believe that a differentiated pricing model, strong brand, and unmatched scale give Alibaba an unfair competitive advantage relative to peers both in and outside China. While the stock's not cheap, we believe the company's outsized growth and margin profiles, if sustained, should support higher valuation over time."
Cantor analyst Youssef Squali also remarks Alibaba is the "[b]est play on growing online consumption in China" and highlights a strong mobile presence, which they say is "an accelerant of e-commerce adoption."
Wedbush, meanwhile, placed an $80 price target on the stock with an Outperform rating on September 11.
As analyst Gil Luria writes, the firm believes Alibaba "may offer one of the most compelling combinations of size, growth and profitability on a global basis," and note expansion in "Chinese e-commerce appears to have room to grow at 30%+ for several years."
Atlantic Equities reported a $100 price target this week, focusing on the company's dominant market share.
"With ~80% of Chinese ecommerce, the company has established a strong position in this rapidly growing market, which we expect it to maintain despite ongoing intense competition," the firm writes.
CRT Capital holds a Buy rating with a $95 price target.
Along with its size, mobile business and revenue growth, CRT analyst Neil Doshi says the valuation is reasonable.
"Our $95 target price is based on EV/EBITDA and P/E valuation methodologies," he writes.
Doshi adds: "[W]e apply a 26x multiple to our C2016 EBITDA estimate of $8.2B and a 32x multiple to our C2016 EPS of $3.04. For context, BABA should generate 35%+ revenue CAGR from F2014-2017, and EBITDA should grow at 36% over the same period –- solid growth vs. competitors like FB, EBAY, AMZN, and GOOG."
Disclosure: At the time of this writing, the author had no position in the equities mentioned in this report.
Latest Ratings for BABA
|Jan 2017||Bernstein||Initiates Coverage On||Outperform|
|Jan 2017||Standpoint Research||Upgrades||Hold||Accumulate|
© 2017 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.