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Alibaba (BABA) PT Lifted to $105 by RBC's Mahaney Following 'Clean' Beat

May 5, 2016 3:25 PM EDT
Get Alerts BABA Hot Sheet
Price: $72.44 +1.19%

Rating Summary:
    33 Buy, 8 Hold, 1 Sell

Rating Trend: Up Up

Today's Overall Ratings:
    Up: 13 | Down: 11 | New: 11
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RBC Capital analyst Mark Mahaney reiterated an Outperform rating and boosted his price target on Alibaba (NYSE: BABA) to $105.00 (from $89.00) following a 'clean' Q1 beat.

"BABA posted strong March Qtr results that beat the Street on GMV, Revenue & EBITDA," Mahaney commented. "Most key – China Retail Revenue growth of 43% Y/Y was the fastest in 6 quarters, reflecting Mobile monetization improvements and Chinese Online Retail secular strength."

Keys the the quarter, according to Mahaney:

1) Strong Mobile Trends – Mobile GMV of 541B RMB came in ahead of the Street @529B, with the 2.42% Take Rate also modestly better than the Street @2.38%, leading to Mobile Revenue upside. Desktop continues to decline, but Mobile is where it’s at and where it’s gonna be…

2) Strong Cloud Computing – Growth remains extremely robust– up an accelerating 175% Y/Y, tho still represents ~4% of total revenue.

3) Strong Active Users & GMV – Active Buyer growth (+21% Y/Y) decelerated slightly, but did reach 423MM, while Tmall GMV growth remained a robust 34% Y/Y. &

4) EBITDA Margins- BABA posted March Qtr. EBITDA of 11.5B RMB, implying margin of 48% and growth of 34% Y/Y.

The firm's FY17 EBITDA increases by 8% to 72B RMB.

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 $75.82 yesterday.



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RBC Capital, Mark Mahaney