In a research report released a short while ago, Cantor analyst Youssef Squali reiterated a Buy rating on Alibaba Group (NYSE:BABA) and reduced the price target to $100 (from $110), after the company reported mixed 3Q:FY15 results, with strength in GMV, user growth and profits but weaker revenue, on a mix-shift to lower take rate mobile transactions, and lower desktop CPCs.
For FY:15, the analyst expects rev./EBITDA/adj. EPS of $12.22B/$6.94B/$2.25 vs. $12.63B/$7.0B/$2.36, previously.
Squali noted, “While we expect Alibaba to continue to dominate the rapidly growing Chinese ecommerce market for years to come, we believe that nearterm predictability of growth and margins has deteriorated given the company’s continued transition to mobile and changes to its user experience. This is amplified by recent tensions with SAIC, which may have a negative short-term impact as well. We continue to like the stock longer-term, however, given BABA’s position and opportunity in and outside of China, and strong balance sheet.”
Alibaba Group Holding Limited, through its subsidiaries, operates as an online and mobile commerce company in the Peoples Republic of China and internationally.