Market Overview

Bullish SunTrust Previews Alibaba's Q3 Print

Bullish SunTrust Previews Alibaba's Q3 Print

Alibaba Group Holding Ltd (NYSE: BABA) is scheduled to report third-quarter earnings Jan. 30. Singles Day performance is likely to have supported the results, and slowing expense growth may boost short-term profitability, according to SunTrust Robinson Humphrey.

The Analyst

Analyst Youssef Squali maintains a Buy rating on Alibaba with an unchanged $180 price target. 

The Thesis

Alibaba could report net revenue of 120.5 billion RMB, representing 38.2-percent year-on-year growth, marginally beating the consensus expectation of 119.2 billion RMB, Squali said in a Monday note. The company’s EBITA is likely to come in at 35.1 billion RMB, just shy of the consensus of 35.2 billion RMB, he said. 

National Bureau of Statistics data suggests a deceleration in growth in China’s online retail sales of physical goods. Growth is estimated to have slowed from 23.9 percent in Q3 to 20.7 percent in Q4.

While macro concerns have adversely impacted China’s online sales growth, this market should continue to grow faster than most others and become the world's largest retail market by end of 2019, Squali said. And Alibaba may remain a share gainer in this market, he said. 

Alibaba will benefit from the Chinese government’s proposed measures to boost consumption of cars and household appliances and to cut small business taxes, in SunTrust's view.

Price Action

Alibaba shares were trading down slightly at $159.14 at the time of publication Monday. 

Related Links:

3 Catalysts That Make Alibaba A Top Mega-Cap Pick At MKM

The 'Amazon Effect' And How Bringg Helps Companies Gain More Customers

Photo courtesy of Alibaba. 

Latest Ratings for BABA

Nov 2019Initiates Coverage OnBuy
Nov 2019Initiates Coverage OnOutperform
Nov 2019MaintainsBuy

View More Analyst Ratings for BABA
View the Latest Analyst Ratings

Posted-In: Analyst Color Emerging Markets Price Target Previews Reiteration Markets Analyst Ratings Trading Ideas Best of Benzinga


Related Articles (BABA)

View Comments and Join the Discussion!

Latest Ratings

INFYBank of AmericaUpgrades
BRMKPrescience PointInitiates Coverage On15.3
DENNSunTrust Robinson HumphreyInitiates Coverage On21.0
DINSunTrust Robinson HumphreyInitiates Coverage On111.0
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

Pump Up The Volume: Morgan Stanley Thinks Sonos Could Go Higher

U.S. Sanctions Against Venezuela? ETFs To Top And Flop