Alibaba (BABA) Price Target Raised to $110 at Cantor Fitzgerald
Cantor Fitzgerald maintained a Buy rating on Alibaba (NYSE: BABA) and raised its price target to $110.00 (from $90.00). Analyst Youssef Squali called Q2 a solid quarter.
"As expected, BABA’s 2Q:FY15 results came in strong, particularly on the top line, with accelerating revenue growth, while the bottom lines were somewhat noisy with higher SBC, increase in amortization expenses and consolidation of newly acquired businesses," said Squali.
"Not surprisingly, management refrained from guiding but suggested that investments in new initiatives and increased mktg for the all-important 11/11 promotional event, are likely to remain elevated. A differentiated pricing model, strong brand and unmatched scale continue to give Alibaba an unfair competitive advantage relative to peers both in and outside China. We believe the company's outsized growth and margin profiles should support higher valuation over time," he continued.
"We’re revising our estimates/PT to reflect F2Q results/mgt’s commentary. For FY:15, we now expect $12,626M in revenue, $7,000M in EBITDA and $2.36M in adjusted EPS vs. $12,139M/$6,738M/$2.30, previously," he added.
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Shares of Alibaba closed at $101.80 yesterday.