UPDATE: Wedbush Initiates Coverage On Alibaba Group With $80 Price Target
One of the most anticipated IPOs, Alibaba Group (NYSE: BABA), was started with an Outperform rating and $80 price target at Wedbush.
Analyst Gil Luria believes Alibaba offers a unique combinations of size, growth and profitability, citing the possibility that gross merchandise volumes may exceed those of Amazon and eBay combined. Wedbush sees ongoing Chinese e-commerce sales growth at greater than 30 percent for the next several years, owing to low penetration and leveraging of traditional commerce channels. The firm also believes that the networking and scale of Alibaba provide competitive advantages.
The shares will price September 18 and begin trading September 19. The company announced Friday that it will close its books a day early, with enough orders to fill all shares of the IPO, likely at the high end of the $60 to $66 offering range. Alibaba may raise as much as $21 billion from the offering, valuing the company at over $162 billion, and putting it in the top five percent of the S&P 500 Index.
Latest Ratings for BABA
|Jan 2017||Bernstein||Initiates Coverage On||Outperform|
|Jan 2017||Standpoint Research||Upgrades||Hold||Accumulate|
|Nov 2016||Brean Capital||Maintains||Buy|
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