Top Analyst Sets Expectations on Alibaba (BABA) Ahead of Fiscal Q1:19 Results


Alibaba (NYSE:BABA) has reported strong year-over-year growth in revenues across segments over the last few years, with recent acquisitions further fueling growth. The e-commerce giant’s revenue growth seems to get more impressive with each passing quarter so expectations are high for its fiscal first-quarter earnings, due out August 23.

RBC’s top analyst Mark Mahaney is forecasting revenue of 81.6B RMB, slightly above Street of 81.5B RMB, Adjusted EBITDA of 28.5B RMB (35% Margin), just above Street of 26.4B RMB, and Adjusted EPS of 8.38 RMB, a nudge below Street at 8.42 RMB.

Mahaney noted, “Ahead of FQ1:19 EPS, we are fine- tuning our estimates. Though our FY19 and FY20 estimates are largely unchanged (< 0.5%), we believe China Retail Revenue growth will be more back-weighted as the company laps large comps in the June and September quarters in this segment. We are raising our Digital Media & Entertainment Revenue estimates (5.0B RMB from 4.4B RMB) due to the agreement announced intra-quarter to stream and market the World Cup. We believe the streaming agreement with CCTV benefited many aspects of BABA’s business, including new subs for Youku, higher Advertising Revenue, and increased delivery on Ele.me.”

Net net, Mahaney reiterates an Outperform rating on Alibaba stock, with a price target of $220, which implies an upside of 24% from current levels.

According to TipRanks.com, which measures analysts’ and bloggers’ success rate based on how their calls perform, analyst Mark Mahaney has a yearly average return of 27.1% and a 73.1% success rate. Mahaney has a 46.7% average return when recommending BABA, and is ranked #14 out of 4847 analysts.

E-commerce giant Alibaba is consistently one of the Street’s favorite stocks. Indeed, TipRanks data shows that BABA has received 10 back-to-back buy ratings in the last three months. The average 12-month price target between these 10 analysts is $255.60, marking a 44% potential upside from current levels.

As of this writing, Alibaba shares are trading at $177.71, down $2.30 or -1.28%.

 

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