Wall Street Asks: What's Happening At Alibaba?

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Alibaba Group Holding Ltd BABA tanked more than 10 percent Thursday following its earnings report. Wall Street analysts are unanimously baffled. Wedbush thinks that Singles Day, when Alibaba sold more than $9 billion in one day, may have created unrealistic earnings expectations.

However, while quarterly results saw the stock price decline, it did not fundamentally change analysts’ views on the company. Analysts remain bullish, though as Credit Suisse said more “conservative” in their view.

Wedbush – Outperform, $115 price target

“We believe BABA offers a compelling combination of size, growth and profitability, on a global basis. Although the discussion has become more balanced between risk and reward, we expect shares to hold onto their premium valuation.”

Brean Capital – Buy, $110 price target from $115

“We view BABA as a market leader in China internet, where the company is transforming its business model from ecommerce services to a full-spectrum ecosystem providing everyday service elements to consumers and helping reshape and develop China and global commerce.”

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SunTrust – Buy, $110 price target from $120

“While concerns (revs, gov't, lockup etc.) may weigh on shares near term, we think this is an opportunity for long-term investors, as shares remain attractively valued vs. growth.”

Credit Suisse – Outperform, $113 price target from $118

“We turn more conservative in near-term take-rate assumptions, but maintain our view that monetization rate continue to increase with better buyer experience and mobile ad roll-out. We see weakness as good buying opportunity.”

Shares traded recently at $89.28.

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Posted In: Analyst ColorPrice TargetAnalyst RatingsBrean CapitalCredit SuisseSunTrustWedbush
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