Alibaba Group Holding Limited American Depositary Shares each representing one Ordinary share

135.1400 211.7000
52 weeks
52 weeks

Mkt Cap 387.79B

Shares Out 2.59B

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The Sell-Side Reaction To Alibaba's Earnings

Alibaba Group Holding Ltd BABA 7.06% shares recorded more than a 10 percent gain after it reported higher than expected earnings and revenue for the first quarter.

Investors have changed their perception on Chinese stocks as the economic growth was not as bad as feared. In fact, second quarter GDP was better than expected and helped the companies to post higher than estimated results.

The events also forced some brokerages to boost the price target on Alibaba shares. There is also unanimity among them that the company started monetizing more from mobile and expects more from cloud.

  • Goldman Sachs added Alibaba to its Conviction List citing increased mobile monetization and cloud potential. The brokerage has a 12-month price tag of $120.
  • Brean Capital increased its price objective on the shares from $100 to $115 pointing out that platform value strengthened. The brokerage has a Buy rating.
  • Morgan Stanley rated shares Overweight and kept a price target of $130.60. The brokerage believes core business remained exciting and cash-generative.
  • Credit Suisse maintained an Outperform rating and boosted price tag to $122. The brokerage expects media and entertainment to make good progress after Youku consolidation.
  • Jefferies reiterated a Buy rating on the stock and increased the price objective from $101 to $103, citing better than expected margins.
  • Citi maintained a Buy on shares and lifted the price tag from $104 to $112. The brokerage sees improving fundamentals and financial disclosure based on its growth outlook of the cloud potential.
  • Deutsche Bank retained a Buy and boosted price target from $107 to $115. The brokerage sees clear enhancements in monetization.
Aug 2016Goldman SachsMaintainsBuy
Aug 2016Brean CapitalMaintainsBuy
Aug 2016Raymond JamesUpgradesOutperformStrong Buy

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