Alibaba Group Holding Ltd (NYSE:BABA) has been reiterated as a Buy at Brean Capital by research analyst Fawne Jiang in a recent report released Friday. The analyst maintained a price target of $97 per share, representing an upside of nearly 11% over the closing stock price. Jiang’s report follows the company’s FY4Q15 financial results with both revenue and non-GAAP EPS come ahead of consensus expectations.
Jiang noted, “The stronger-than-expected revenue growth was mainly driven by a better take rate from its China commerce retail business, helped by fast mobile adoption and improving mobile monetization. Going into FY2016, BABA will continue to focus on improving and expanding its existing core ecommerce business and investing in new business initiatives to drive long-term growth. While we expect to see some near-term headwinds on top-line growth from increasing efforts in quality control (to build a healthier ecommerce system) and margin pressure from stepped-up investment in new business initiatives, we expect these efforts to benefit the company’s long-term growth.”
“We remain positive on BABA’s long-term growth outlook and view BABA as a market leader in China Internet, where the company is transforming its business model and on route to becoming a full-spectrum ecosystem providing everyday service elements to consumers and helping to reshape and develop China and global commerce.”, the analyst concluded.
According to TipRanks.com, which measures analysts’ and bloggers’ success rate based on how their calls perform, analyst Fawne Jiang has a total average return of 2.4% and a 47.8% success rate. Jiang has a -9.1% average return when recommending BABA, and is ranked #1626 out of 3596 analysts.