Alibaba (BABA) PT Lifted to $105 by RBC's Mahaney Following 'Clean' Beat
RBC Capital analyst Mark Mahaney reiterated an Outperform rating and boosted his price target on Alibaba (NYSE: BABA) to $105.00 (from $89.00) following a 'clean' Q1 beat.
"BABA posted strong March Qtr results that beat the Street on GMV, Revenue & EBITDA," Mahaney commented. "Most key – China Retail Revenue growth of 43% Y/Y was the fastest in 6 quarters, reflecting Mobile monetization improvements and Chinese Online Retail secular strength."
Keys the the quarter, according to Mahaney:
1) Strong Mobile Trends – Mobile GMV of 541B RMB came in ahead of the Street @529B, with the 2.42% Take Rate also modestly better than the Street @2.38%, leading to Mobile Revenue upside. Desktop continues to decline, but Mobile is where it’s at and where it’s gonna be…
2) Strong Cloud Computing – Growth remains extremely robust– up an accelerating 175% Y/Y, tho still represents ~4% of total revenue.
3) Strong Active Users & GMV – Active Buyer growth (+21% Y/Y) decelerated slightly, but did reach 423MM, while Tmall GMV growth remained a robust 34% Y/Y. &
4) EBITDA Margins- BABA posted March Qtr. EBITDA of 11.5B RMB, implying margin of 48% and growth of 34% Y/Y.
The firm's FY17 EBITDA increases by 8% to 72B RMB.
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Shares of Alibaba closed at $75.82 yesterday.