Alibaba's (BABA) Price Target Raised to $138 at Deutsche Bank
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Deutsche Bank maintained a Buy rating on Alibaba (NYSE: BABA) and raised its price target to $138.00 (from $109.00). Analyst Alan Hellawell said China’s online consumers remain steadfast in their preference for Alipay.
"Our recent payments survey reveals Alipay ranks as the clear #1 online payment method, supporting an unrivalled 40.8% of all online transactions, and 37.4% of O2O consumption. With survey respondents moreover revealing greater intentions to expand use of Alipay over other alternatives, our latest forecasts halt a previously assumed market share slide to competitors. We maintain Buy and lift TP 27% to USD138 on rising valuation of Ant and valuation roll-over into 2017," said Hellawell.
The analyst added, "Alipay has evolved from a break-through payment platform to a more general onramp connecting consumers and merchants with a growing host of financial services; from wealth management (Yu’E Bao) to credit rating (Sesame Credit), to consumer financing (Ant Check Later) and insurance. While Alipay ebbs in its dominance of the Ant P&L (from over 70% of 2014 revs to 43% in 2017), ancillary financial services will expand to drive growth over the next several years."
Shares of Alibaba closed at $108.75 yesterday.
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