Buy Alibaba (BABA) on Today's Weakness - Oppenheimer
Oppenheimer analyst Ella Ji reiterating an Outperform rating and $133 price target on Alibaba (NYSE: BABA), telling client to buy on today's weakness.
Ji comments, "F3Q15 revenue outperformed our estimate by 1% but missed the Street by 5%. Non-GAAP operating margin improved nicely from 43.7% in 2Q15 to 52.2%, led by lower than expected R&D and G&A spending. Non-GAAP EPS of $0.81 was $0.09 above our estimate on solid margin expansion. We appreciate the company's efforts in strengthening user experience and market share, while we expect incremental near-term pressure on overall take rate. We think the sell-off today indicates a buying opportunity. We are in the process of reviewing our model."
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Shares of Alibaba closed at $98.45 yesterday.