Market Overview

Improvements Continue At Alibaba; Keybanc Raises Price Target

Share:

Shares of Alibaba Group Holding Ltd (NYSE: BABA) hit a new all-time high of $169.50 on Friday and are now higher by more than 90 percent since the start of 2017. According to some analysts, there is still further upside ahead.

KeyBanc Capital Markets' Hans Chung maintains an Overweight rating on Alibaba's stock with a price target boosted from $160 to $182 after the company reported strong revenue growth in its earnings report.

Alibaba grew its revenue by 56 percent year-over-year in its fiscal first quarter, mostly due to strength in its core eCommerce business, Chung noted in a report. The company's gross margin and earnings per share of 65.2 percent and $1.17 also exceeded expectations of 62.7 percent, and 93 cents per share, respectively.

More important to the China-based company's story, the strong earnings report came at a time of increasing promotional activity, the analyst said. The company's improvement in monetization more than offset incremental spending in the quarter and the upward trend of monetization improvements are expected to continue.

The analyst's revised $182 price target is based on the following sum of the parts: 1) core eCommerce valued at $146.70 per share, 2) AliCloud valued at $12.90 per share, 3) DEM (Digital Media and Entertainment) valued at $3.00 per share, and 4) strategic investments valued at $19.40 per share.

Related Links:

Alibaba's Cloud Trajectory Is Akin To Amazon's AWS

Here's Why Baird Is Impressed With Alibaba

Latest Ratings for BABA

DateFirmActionFromTo
Feb 2020SunTrust Robinson HumphreyMaintainsBuy
Feb 2020OppenheimerMaintainsOutperform
Feb 2020Raymond JamesMaintainsStrong Buy

View More Analyst Ratings for BABA
View the Latest Analyst Ratings

Posted-In: Alibaba Alibaba Earnings AliCloud Hans ChungAnalyst Color Price Target Analyst Ratings

 

Related Articles (BABA)

View Comments and Join the Discussion!

Latest Ratings

StockFirmActionPT
SNPSCFRAMaintains160.0
GRPNMorgan StanleyMaintains1.5
PPCCFRADowngrades30.0
HMSYCantor FitzgeraldReiterates33.0
FSLRCascendMaintains60.0
View the Latest Analytics Ratings
Don't Miss Any Updates!
News Directly in Your Inbox
Subscribe to:
Benzinga Premarket Activity
Get pre-market outlook, mid-day update and after-market roundup emails in your inbox.
Market in 5 Minutes
Everything you need to know about the market - quick & easy.
Daily Analyst Rating
A summary of each day’s top rating changes from sell-side analysts on the street.
Fintech Focus
A daily collection of all things fintech, interesting developments and market updates.
Thank You

Thank you for subscribing! If you have any questions feel free to call us at 1-877-440-ZING or email us at vipaccounts@benzinga.com