Alibaba Group Holding Ltd (NYSE:BABA) saw quite the impressive turnout for this weekend’s annual Singles Day, an anti-Valentine’s Day that offers singles exciting deals in China, creating a new kind of love story around shopping sales. With the king of Chinese e-commerce soaring past $25 billion on Singles Day, Alibaba has good odds for a positive third fiscal showcase.
Top analyst Colin Sebastian chimes in with a bullish take, impressed that the company realized roughly 40% in year-over-year GMV growth for the shopping holiday, meaningfully topping last year’s 32% growth.
Therefore, the analyst maintains an Outperform rating on BABA stock with a $210 price target, which implies a 14% upside from where the stock is currently trading.
Sebastian writes that Singles Day “spotlights Alibaba’s data advantage to drive omni-channel growth,” adding, “While offline-influenced sales are still likely a small portion of overall volume, Alibaba’s persistent knowledge of consumer purchase/viewing/browsing activity can be utilized to drive instore traffic to merchant partners and to Alibaba ‘pop up’ stores.”
Overall, “For perspective, we note that the $25B in GMV represents ~7x the online sales volume in the US on Cyber Monday, and is roughly 30% the size of eBay’s GMV for the entire year. We believe Singles Day benefits from Alibaba’s increasing focus on ‘omni-channel’ commerce (online + offline), and while promotional periods could pull forward holiday sales to a degree, the strong outcome provides additional visibility for our F3Q China commerce revenue growth estimate of ~48%. On a broader level, we continue to view Alibaba as well positioned for long-term strong growth, not only from core commerce, but also less-developed opportunities in Cloud and Media,” concludes one of Wall Street’s best performing analysts, confident on the company’s success down the line.
Colin Sebastian has a very good TipRanks score with a 76% success rate and a high ranking of #16 out of 4,706 analysts. Sebastian garners 23.4% in his yearly returns. When recommending BABA, Sebastian earns 46.2% in average profits on the stock.
This e-commerce player is a Wall Street favorite, earning unanimous praise from every analyst polled, with TipRanks exhibiting BABA as a Strong Buy. Out of 19 analysts polled by TipRanks in the last 3 months, all 19 are bullish on Alibaba stock. With a return potential of nearly 14%, the stock’s consensus target price stands at $210.20.