Alibaba Group Holding Ltd (NYSE:BABA)’s automobile business unit today established collaborative relationships with BMW MINI and Jaguar Land Rover aimed at enhancing customers’ online car buying experience, while building a complete automobile value chain for China’s car industry.
Alibaba Group’s car business unit, Alibaba Automotive division, was launched earlier this month to incorporate the Company’s car-related businesses such as big data marketing, Tmall’s car vertical, Taobao’s second-hand car market and vehicle financing into an integrated car ecosystem and platform.
Under the Memorandum of Understanding (MoU) signed between MINI and Alibaba Group, Alibaba Group’s Tmall.com platform will become the main e-commerce platform for MINI online car sales in China. MINI will conduct pre-sale launches of new cars and roll out special edition models in China through its flagship Tmall store. MINI and Alibaba Automotive will collaborate in developing and testing customized online-to-offline services and work together on branding and online marketing initiatives.
In a separate MoU signed with Jaguar Land Rover, Alibaba Automotive and Jaguar Land Rover agreed to collaborate on big data research and e-commerce initiatives aimed at providing efficient and convenient customer service.
Sean Green, head of MINI’s China business, Maurits Aalberse, Vice President of Jaguar Land Rover China and WANG Licheng, general manager of the Alibaba Automotive division participated in the signing ceremonies that were conducted on the sidelines of the Shanghai Auto Show.
“Alibaba Automotive is committed to creating a platform and ecosystem for car brands and consumers to actively participate in, in order to improve operational efficiency in the industry and to provide users enriching online car-buying experience. By working with valuable partners like MINI and Jaguar Land Rover, Alibaba is able to strengthen our O2O presence thus helping raise the bar on customer service in the industry,” said WANG Licheng, general manager of Alibaba Automotive division.
Last week, Alibaba Automotive and Shanghai General Motors agreed to expand cooperation in China’s automotive industry in the areas of car finance, big data marketing, after sales service and O2O.
Alibaba Automotive has partnerships with nearly 50 car brands, 10,000 car dealerships in China and serves 60 million car owners through the Tmall car vertical (car.tmall.com). In 2014, 120,000 cars were sold through Tmall.com. (Original Source)
Shares of Alibaba closed yesterday at $82.42 . BABA has a 1-year high of $120 and a 1-year low of $80.03. The stock’s 50-day moving average is $83.71 and its 200-day moving average is $95.46.
On the ratings front, Alibaba has been the subject of a number of recent research reports. In a report issued on April 20, Summit Research analyst Henry Guo initiated coverage with a Buy rating on BABA and a price target of $97, which implies an upside of 17.7% from current levels. Separately, on April 16, Brean Murray Carret’s Fawne Jiang reiterated a Buy rating on the stock and has a price target of $97.
According to TipRanks.com, which ranks over 7,500 financial analysts and bloggers to gauge the performance of their past recommendations, Henry Guo and Fawne Jiang have a total average return of 10.3% and 1.0% respectively. Guo has a success rate of 52.6% and is ranked #1207 out of 3577 analysts, while Jiang has a success rate of 47.0% and is ranked #2053.
The street is mostly Bullish on BABA stock. Out of 22 analysts who cover the stock, 20 suggest a Buy rating and 2 recommend to Hold the stock. The 12-month average price target assigned to the stock is $105.80, which represents a potential upside of 28.4% from where the stock is currently trading.