Alibaba (BABA): Singles Day Delivers - Needham

November 14, 2016 6:50 AM EST
Get Alerts BABA Hot Sheet
Price: $96.06 --0%

Rating Summary:
    36 Buy, 2 Hold, 0 Sell

Rating Trend: Up Up

Today's Overall Ratings:
    Up: 18 | Down: 13 | New: 9
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Needham & Company analyst, Kerry Rice reiterated his Buy rating on shares of Alibaba (NYSE: BABA) after Singles Day GMV was nearly 18B, up 32% y/y. The total was slightly below his modeled estimate of $18.3B but he believes the company should meet December quarter revenue expectations.

Several positives from Single's Day include:
1) the majority of transactions were mobile.
2) customers and merchants from all of the world participated in the event, highlighting that Alibaba serves as an important gateway for U.S. brands and retailers to the Chinese consumers.
3) Alipay played an important role during the day further highlighting its reach, scale, and product diversification.

On top of the Singles Day data, the analyst believes Ant Financial is on track for a 2017 IPO, which could serve as a catalyst for Alibaba. No change to the $125 PT.

For an analyst ratings summary and ratings history on Alibaba click here. For more ratings news on Alibaba click here.

Shares of Alibaba closed at $92.99 yesterday.

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