Cantor Fitzgerald Maintains Positive Outlook for Alibaba (BABA) Ahead of Q1 Despite Monetization Headwinds

Cantor Fitzgerald maintained a Buy rating and $100 price target on for Alibaba Group Holding Limited (NYSE: BABA) ahead of Q1 results on 05/07. The firm notes monetization is likely to dip again given rapid growth in mobile market. Monetization is expected to decrease again ~9% Y/Y (to 1.97%), resulting in 27% Y/Y growth in China retail revenue. In addition to earnings a conference call to discuss, among other topics, counterfeit products and fake transactions in BABA's marketplaces is scheduled for 05/07 at 7:30 AM ET.

The firm is expecting strong 4Q:FY15 results. They expect revenue to come in line with FactSet consensus of $2,744M. They expect $0.46 in adjusted EPS and $1,539M in EBITDA vs. Street consensus of $0.44/$1,426M.

Cantor Fitzgerald analyst Youssef Squali comments, "Topics for discussion on the call include a) clarity from management on the controversial topic of counterfeit products and fake transactions on BABA's marketplaces as well as fictitious transactions (originally published in a white paper by the SAIC) , b) update on consumer demand trends in light of China's slowing GDP growth, c) progress on Tmall Global and the offering's traction to-date with both consumers and large brands, d) mgt's strategy on addressing the opportunity in e-commerce outside of China, both in emerging as well as developed markets, and e) initiatives targeted at increasing mobile monetization and users' engagement with the platform."

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 $81.17 yesterday.

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