Oppenheimer analyst Ella Ji weighed in today with an update on Alibaba Group (NYSE:BABA), after the company beat fiscal third-quarter profit expectations. However, revenue came in less than expected. The analyst reduced the price target to $112 (from $133), but reiterated an Outperform rating on the stock.
Ji observed, “Our positive thesis on BABA continues to build on its robust GMV growth and future monetization upside potential. We think its lower-than-expected blended take rate is attributable to management’s intention to maintain market share among intense competition, via reducing merchants’ costs and improving user experiences. Also, on 1/30, the CEO met with the top official of SAIC and agreed to crack down on counterfeit goods together. This should remove some concerns, in our view. BABA also progresses in other verticals such as online pharmaceutical/healthcare and digital entertainment.”
Alibaba Group Holding Limited, through its subsidiaries, operates as an online and mobile commerce company in the Peoples Republic of China and internationally.