Alibaba (NYSE: BABA) is due to report earnings tomorrow morning before the bell and MKM Partners believes this may be the quarter when there is a breakout.

MKM analyst, Rob Sanderson, thinks there is significant earnings leverage as mobile take-rates rise. He expects this to flow through to results this quarter or next as the company becomes more focused on monetization improvements.

Management believes that mobile take-rate will eventually reach and exceed the peak rates seen on desktop. This is a similar view held by Google / Alphabet (GOOGL), a view that is beginning to be validated as mobile search prices was the highlight of a Q3 acceleration reported last Thursday.

The call will be held at 7:30AM EDT at 845 675 0437.

MKM maintained a Buy rating and price target of $85 on the stock.

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 $75.62 yesterday.