Topeka Raisies Price Target On Alibaba, Gives Company An A-

Topeka Capital raised its price target on Alibaba Group Holding Ltd. BABA Wednesday from $117 to $125.


The firm noted that “Alibaba delivered a strong quarter, with accelerating GMV growth and accelerating revenue growth across all segments.”


The price target was raised after Alibaba posted revenue and adjusted earnings that were above Topeka’s estimates and consensus.


The firm gave the company a “grade” of A- for its first quarter reporting as a public company.


The downside included margin declines, lower desktop monetization and increased capex.


The negative factors were not enough to change the firm’s investment thesis as it maintained a Buy rating on the stock.


The analyst note concluded that the “scale and the magnitude of the opportunity ahead” for Alibaba makes for a compelling Buy rating.

 

Credit Suisse was another firm that was bullish after Alibaba's earnings news and also increased its price target Wednesday.


Alibaba Group Holding Ltd. recently traded at $109.75, up 3.47 percent.

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Posted In: Price TargetAnalyst RatingsCredit SuisseTopeka
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