Cantor analyst Youssef Squali weighed in today with his expectations on Alibaba Group (NYSE:BABA), as the company is set to report earning results on Thursday, January 29. The analyst rates the stock a Buy with a $110 price target, which represents a 6% upside from where the stock is currently trading.
Squali observed, “We expect BABA to report strong 3Q:FY15 results both on the top and bottom lines, powered by solid growth in core China retail marketplaces (TaoBao and TMall). We expect $4.487M (+48.5% Y/Y) in revenue vs. FactSet consensus of $4,421M. We expect $0.85 in adjusted EPS and $2,494M in EBITDA vs. Street consensus of $0.75/$2,269M.”
Furthermore, “We expect $125.86B (+48% Y/Y) in GMV on China retail marketplaces, across both Tmall and TaoBao, driven by strong active buyer growth (+~50% Y/Y.). Given the rapid growth in mobile (which has lower monetization vs. desktop), we expect monetization to decrease again ~2% Y/Y (to 2.98%), resulting in 45% Y/Y growth in China retail revenue (to $3,757M or 84% of total revenue).”
The analyst added, “We expect $269M in int’l commerce revenue, up 32% Y/Y. We expect int’l wholesale to increase 18% Y/Y to $191M and for int’l retail to grow 80% Y/Y to $78M.”
Alibaba Group Holding Limited, through its subsidiaries, operates as an online and mobile commerce company in the Peoples Republic of China and internationally.