Crispidea analyst Shubhadha Mathad was out pounding the table on shares of Alibaba (NYSE:BABA), reiterating a Buy rating with a price target of $250, which represents a potential upside of 49% from where the stock is currently trading.
Next Thursday, Alibaba will release its fiscal first-quarter-earnings results (which will come out before the market opens). Mathad expects the EPS of $7.44 and $9.40 for FY19 and FY20, respectively. The analyst estimates revenues to grow at a rate of 60% and 50% for FY19 and FY20, respectively.
Mathad noted, “Alibaba continues to provide massive revenue growth since past two years, mainly driven by its core commerce and cloud segments. The big investments dragged down the operating margin which we expect to show its results in future […] Our estimates are based on the; 1) Robust revenue growth; 2) Big investments in Ant Financials, Ele.me, Lazada and “New Retail”; 3) Maintained momentum with impressive revenue growth in its e-commerce and cloud segments.”
This analyst is not the only fan of the e-commerce giant on Wall Street, as TipRanks analytics exhibit BABA as a Strong Buy. Based on 11 analysts polled in the last 3 months, all 11 are bullish on the stock. The 12-month average price target stands at $252.36, marking a 50% upside from where the stock is currently trading.