Alibaba (BABA) Price Target Lifted to $122 at BofA/Merrill Lynch
BofA/Merrill Lynch reiterated analyst Eddie Leung reiterated Buy rating and boosted his price target Alibaba (NYSE: BABA) price target of $122.00 (from $112.00) following Q2 results
Leung noted the results indicate its preferences in adding new users and maintaining an active platform over rising take-rates.
"Co. aims at repeat purchases of these users in light of its experience of “good” user retention rates and rising annual spending of loyal users," he said. "However, the large mix of Taobao, staying at 68% of retail GMV in 2QFY15, would make take-rate improvement less easy as Taobao charged on ads but did not get commissions," he added.
The firm adjusted FY 2015 EPS (CNY) to 13.34 to 11.14, FY 2016 from 13.74 to 11.68 and FY 2017 from 17.63 to 14.97.
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Shares of Alibaba closed at $106.07 yesterday.