Alibaba (BABA): The Flywheel Starts To Spin - Suntrust

August 12, 2016 6:26 AM EDT
Get Alerts BABA Hot Sheet
Price: $96.06 -0.11%

Rating Summary:
    36 Buy, 2 Hold, 0 Sell

Rating Trend: Up Up

Today's Overall Ratings:
    Up: 30 | Down: 30 | New: 23
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SunTrust Robinson Humphrey analyst, Bob Peck, reiterated his Buy rating on shares of Alibaba (NYSE: BABA) and raised his price target to $110.00 from $90.00 after the company reported a strong quarter and increased its financial disclosure.

Three key points for investors: 1) revenue growth accelerated, continuing to decouple from GMV. Engagement remains robust while ARPU from customers AND merchants increased. 2) Core Commerce profitability of 61% EBITA was better than expected. 3) Cloud grew 156% and narrowed its losses, with incremental margin of 28%.

The analyst raised his PT to $110 from $90 implying ~23x CY2018 EPS (~1x PEG).

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 $91.77 yesterday.

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