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What To Expect From Alibaba And The World's Largest E-Commerce Sale

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The world's largest single day e-commerce event, Singles Day, will take place on Tuesday throughout China and the world. Investors may pay greater attention to the country's most recognizable e-commerce player, Alibaba Group Holding Ltd (NYSE: BABA).

Brean Capital: Alibaba ‘Charging Ahead'

Fawne Jiang of Brean Capital explained in a note on Monday that Alibaba is well positioned within the competitive landscape. In fact, the analyst said that Alibaba will use this year's event as a key test trial to drive its new business models (such as O2O collaborations), cross sell and promote across various verticals and push its financial products.

"With this innovative use of Singles' Day, we believe Alibaba is increasing integrating itself into every day service elements and ultimately continuing along its path of reshaping and developing China and global eCommerce," Jiang wrote.

Shares are Buy rated with a $115 price target.

SunTrust: Alibaba To Benefit ‘Significantly'

Robert Peck of SunTrust Robinson Humphrey explained in a note on Monday that Alibaba will benefit "significantly" from Tuesday's selling event.

Alibaba is taking a different approach in its selling strategy. Peck noted that for the first time ever, Alibaba's marketers are bringing the selling event abroad through TMal Global and Aliexpress. The move would be consistent with comments from Alibaba's Chief Operating Officer Daniel Zhang who stated that Singles Day has the potential to be a global phenomenon within 10 years.

In 2013, Alibaba handled over 150 million packages generating $5.8 billion of gross merchandise volume. If the company reaches $8.5 billion in gross merchandise volume on Singles Day, it would represent an approximate 45 percent growth. Peck wrote that "this would be remarkable."

Shares are Buy rated with a $120 price target.

Latest Ratings for BABA

DateFirmActionFromTo
Nov 2016Brean CapitalMaintainsBuy
Nov 2016JefferiesMaintainsBuy
Oct 2016CitigroupMaintainsBuy

View More Analyst Ratings for BABA
View the Latest Analyst Ratings

Posted-In: Alibaba AliexpressAnalyst Color News Retail Sales Events Global Analyst Ratings

 

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