Youssef Squali of Cantor rates stocks in the internet and media sectors and is one of the top 50 analysts rated on TipRanks. Today, Squali weighed in on Chinese e-commerce giant Alibaba Group Holding Ltd (NYSE:BABA), and online payment company Paypal Holdings Inc (NASDAQ:PYPL), in front of their upcoming earnings releases.
Alibaba Group Holding Ltd
With Alibaba preparing to release fiscal third-quarter earnings on Thursday, January 28, Squali reiterated a Buy rating and price target of $90 on the stock.
Squali wrote, “We expect BABA’s 3Q:FY16 results, slated for 1/28, to come in line with Street expectation for a robust 22% Y/Y revenue growth. While sales on Singles day (11/11) were strong, macro concerns around China’s economy, health of the Chinese consumer and competition remain key issues. For its part, the Chinese government reported that retail sales in CY:4Q averaged ~11.1% Y/Y vs. ~10.7% in CY:3Q, implying a modest pick up in consumer spending. Longer-term, BABA remains a key beneficiary of the growing consumption of a growing middle class in China, and rising cross-border trade, in our view.”
According to TipRanks.com, which measures analysts’ and bloggers’ success rate based on how their calls perform, analyst Youssef Squali has a yearly average return of 13.7% and a 56.2% success rate. Squali has a -13.6% average return when recommending BABA, and is ranked #27 out of 3586 analysts.
Out of the 21 analysts polled by TipRanks in the last 3 months, 20 rate Alibaba stock a Buy, while 1 rates the stock a Hold. With a return potential of 35%, the stock’s consensus target price stands at $95.53.
Paypal Holdings Inc
Analyst Youssef Squali reiterated a Buy rating on shares of Paypal, with a price target of $45, ahead of its upcoming earnings report on Wednesday, January 27. According to TipRanks.com, Squali has a -11% average return when recommending PayPal.
Squali noted, “We expect PayPal to report healthy 4Q results, in line with Street expectations for mid-teens revenue growth and mid-twenties EBITDA margins. MasterCard’s intra-quarter update is a has positive read-throughs for PayPal. With management’s focus on the online and in-apps opportunities, and with sustained growth in active users and deeper penetration of the merchant base, Paypal should continue to grow TPV and revenue at a healthy double-digits rate for several more years, in our view.”
Most of the analysts covering Paypal remain bullish on the company’s stock. A total of 19 analysts have provided ratings in the last 3 months; 14 of them suggest a Buy, 3 recommend a Hold rating and 2 suggest to Sell. The 12-month consensus mean price target for the stock is $42.06, reflecting a 34.81% upside over yesterday’s closing price.