Benzinga Breakfast Notes: Jefferies Raises Alibaba Price Target From $101.80 To $118.00
Highlights from Jefferies' note on Alibaba Group Holding Ltd (NYSE: BABA).
1. Monetization gap between mobile and PC continues to narrow, driven by strong mobile traffic growth and increasing mobile ad spending.
2. We believe Alibaba’s large active user base with rising consumption power will drive long-term revenue growth.
3. Average annual spending of a user who has one year shopping experience on Alibaba’s China retail platform is approximately RMB 1,000, while users with five-year and ten-year history spend RMB15 K and RMB3 0K annually!
4. Risks: limited ability to influence corporate matters by individual shareholders and potential conflict of interest arising from the company’s corporate structure
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