Analysts Change Price Targets on Alibaba Group Holding Ltd (BABA) and Yelp Inc (YELP)

Alibaba Group Holding Ltd

Brean Capital analyst Fawne Jiang reiterated a Buy rating on shares of Alibaba Group Holding Ltd (NYSE:BABA), while raising the price target to $100 (from $96), after the Chinese e-commerce giant reported mixed FY4Q16 results yesterday morning. The new price target implies an upside of 26% from current levels.

Jiang explained, “The stronger-than-expected revenue growth was mainly driven by growth of online marketing revenue from its China commerce retail business on the back of both traffic and monetization improvement. Going forward, we expect BABA’s core ecommerce business to remain solid despite macro headwinds and GMV deceleration driven by 1) healthy consumer consumption; 2) improving monetization trend as the company continues to build a multi-dimensional platform where merchants and consumers can seamlessly engage, which will continue to drive user engagement through social ecommerce transformations and command higher pricing with broadened value propositions to merchants; and 3) mobile transition with continue upward trends for both mobile traffic and mobile monetization.”

“Moreover, we are encouraged to see accelerating growth of BABA’s emerging businesses particularly the AliCloud business, which will help both top-line and earnings growth down the road,” the analyst added.

According to, which measures analysts’ and bloggers’ success rate based on how their calls perform, analyst Fawne Jiang has a yearly average return of 6.5% and a 47% success rate. Jiang has a -8% average return when recommending BABA, and is ranked #511 out of 3899 analysts.

Out of the 30 analysts polled by TipRanks, 28 rate Alibaba stock a Buy, while 2 rate the stock a Hold. With a return potential of 21%, the stock’s consensus target price stands at $96.41.

Yelp Inc

RBC Capital analyst Mark Mahaney reiterated an Outperform rating on Yelp Inc (NYSE:YELP), and raised the price target to $36 (from $33), after the local-business review company posted solid first-quarter results, with revenue of $158.6 million, compared to consensus estimates of $156 million. More importantly, Yelp’s $138 million Local Ad Revenue came in above the Street and accelerated to 40% Y/Y growth.

Mahaney commented, “YELP has been one of the biggest underperformers in the ‘Net sector, down 47% in 2015 and 25% YTD. Seems way excessive to us. Especially if YELP Local Advertising Revenue growth is at a positive inflection point. Which we believe it may be. We also see current valuation as potentially dramatically attractive, with limited downside (cash = 20% of mkt cap) and material upside (50%) within 12 months. We still see in Yelp a strong and improving local solution and an asset with significant strategic value, facing a way under-penetrated market opportunity. And YELP remains for us a core play on both Mobile and Native Advertising Growth.”

According to, analyst Mark Mahaney has a yearly average return of 18% and a 61% success rate. Mahaney has a -17% average return when recommending YELP, and is ranked #6 out of 3899 analysts.

Out of the 32 analysts polled by TipRanks, 12 are bullish on Yelp stock, 17 remain sidelined, and 3 are bearish. With a return potential of 5%, the stock’s consensus target price stands at $27.69.



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