Alibaba's (BABA) Price Target Raised to $102 at Deutsche Bank

Deutsche Bank maintained a Buy rating on Alibaba (NYSE: BABA) and raised its price target to $102.00 (from $99.00). The change follows Q3 results. Analyst Alan Hellawell III noted monetization was very strong.

"Alibaba delivered Dec GMV growth of 23% YoY, 4% lower than DBe. Tmall GMV notably saw only 37% YoY growth (DBe +47% YoY.) Management blamed slower growth on warm weather, which it believes reversed in the first few weeks of the March quarter. We expect growth recovery in apparel (est 35% of GMV) this quarter from possible single-digit YoY growth levels last Q. GMV may have also missed on BABA’s growing focus on “high quality GMV”," said Hellawell.

"Company management encouragingly suggested a "de-coupling" between e-commerce growth and broader macro-economic trends. China retail sales growth in 2015 accelerated to 10.7% YoY, while e-commerce penetration rose from 10.6% in 2014 to 12.9% last year, this cast against a weakening in many macro-economic readings. We were pleasantly surprised with Alibaba's confident views around growth despite these more precarious times," added the analyst.

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 $69.54 yesterday.

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