Cantor Comments On Alibaba Following Earnings Release; Raises PT To $110


In a research report released earlier today, Cantor analyst Youssef Squali maintained a Buy rating on Alibaba Group (NYSE:BABA) with a $110 price target, which represents a slight upside potential from current levels. The report follows the company’s earnings results, which were ahead of revenue, EPS and EBITDA expectations.

Squali commented: “As expected, BABA’s 2Q:FY15 results came in strong, particularly on the top line, with accelerating revenue growth, while the bottom lines were somewhat noisy with higher SBC, increase in amortization expenses and consolidation of newly acquired businesses. Not surprisingly, management refrained from guiding but suggested that investments in new initiatives and increased mktg for the all-important 11/11 promotional event, are likely to remain elevated. A differentiated pricing model, strong brand and unmatched scale continue to give Alibaba an unfair competitive advantage relative to peers both in and outside China. We believe the company’s outsized growth and margin profiles should support higher valuation over time.”

According to TipRanks.com, which measures analysts’ and bloggers’ success rate based on how their calls perform, analyst Youssef Squali has a total average return of 27.9% and a 73.0% success rate. Squali has a 13.2% average return when recommending BABA, and is ranked #4 out of 3358 analysts.

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