Brean Capital Reiterates Buy on Alibaba (BABA) Following Earnings Report
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Brean Capital reiterated a Buy rating and $115.00 price target on Alibaba (NYSE: BABA) following the company's 2Q earnings report. Revenue came in at RMB 34.3bn (+55% YoY), exceeding consensus estimates of RMB 33.9bn. Adjusted EPS came in at $0.79, exceeding consensus of $0.69 by 10 cents on operating leverage from higher core commerce revenue.
Analyst Fawne Jiang commented, "BABA remains on a fast growth track with healthy growth across all key segments. China commerce benefits from the company’s continued effort to add high quality traffic with improving ROI to merchants through its enriched contents, social engagement and personalization. With BABA increasing its focus on global markets, the company saw an acceleration of international commerce organically on the back of strong performance of Lazada (+42% QoQ). Cloud and digit entertainment and media, while still at investment stage, offers the next leg of growth as the company taps into an increasing portion of its enterprise customers’ budgets as well as consumers’ wallet share. With its broadened value proposition and a clear road map, we are positive on the mid/long-term growth outlook of the company. We reiterate our Buy rating on BABA stock and our TP of $115."
Shares of Alibaba closed at $98.51 yesterday.
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