What To Expect At Alibaba's Investor Day
Alibaba Group Holding Ltd (NYSE: BABA) is scheduled to host its Investor Day on June 14 in Hangzhou. JPMorgan’s Doug Anmuth maintained an Overweight rating for the company, with a price target of $96. The analyst commented that the company’s “sustainable growth outlook and impressive profitability on an already large scale” makes the stock attractive for global investors.
Analyst Doug Anmuth mentioned what to expect during Alibaba’s Investor Day:
- China Retail marketplaces: Management has increasingly focused on user engagement at Taobao and Tmall, and this has become “an important driver of monetization improvement.” Alibaba may provide additional data on user engagement metrics, another measure to gauge the platform’s strength.
- FY17 guidance: Anmuth expects the company to guide to FY17 revenue of RMB146.8bn, representing 45 percent y/y growth, including Youku consolidation. China Retail revenue is expected to be projected at RMB 107.3bn, representing 34 percent growth.
- Increased insight into Cainiao’s business: The analyst expects the company to provide more details of the accounting treatment of Cainiao, how this business helps improve merchant efficiency and user experience as well as Cainiao’s asset-lite model.
- Core margins: Anmuth expects core retail margins to be projected in the high 50 percent range. While stating that segment details may be provided only after the F1Q17 earnings, Anmuth pointed out that further segmentation of the business would offer more insight into core profitability.
- Others: The company may provide more specific disclosure on “emerging traction” businesses and more clarity on long-term strategic bets.
Latest Ratings for BABA
|Jan 2017||Bernstein||Initiates Coverage On||Outperform|
|Jan 2017||Standpoint Research||Upgrades||Hold||Accumulate|
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