Alibaba: Susquehanna keeps its positive view
(CercleFinance.com) - Susquehanna maintains its "positive" view on Alibaba, with a 220-dollar price target, saying that the strong quarterly results highlight the continued secular momentum at the Chinese e-commerce giant.
The US broker calls the company a "category killer" with "several years of strong growth ahead", with the recent numbers giving it incremental confidence in the company's momentum.
While investments will likely continue to weigh on consolidated margins, profit growth should remain strong and ultimately be higher with these investments, it says.
Also, Susquehanna sees numerous potential catalysts to drive continued positive estimate revisions, most notably ad load and data-driven innovations which could materialize in 2019.
Over the intermediate to longer term, investments in the new retail, logistics, and international expansion should pay meaningful dividends, the broker says.
Copyright (c) 2018 CercleFinance.com. All rights reserved.
The information and analyses distributed by Cercle Finance are only intended as decision-making support for investors. Cercle Finance's responsibility may not be entailed, either directly or indirectly following the use of such information and analyses by readers. Any non-professional investor is recommended to consult a professional advisor before making any investment decision. This indicative information in no way constitutes any invitation to sell or buy securities.
The US broker calls the company a "category killer" with "several years of strong growth ahead", with the recent numbers giving it incremental confidence in the company's momentum.
While investments will likely continue to weigh on consolidated margins, profit growth should remain strong and ultimately be higher with these investments, it says.
Also, Susquehanna sees numerous potential catalysts to drive continued positive estimate revisions, most notably ad load and data-driven innovations which could materialize in 2019.
Over the intermediate to longer term, investments in the new retail, logistics, and international expansion should pay meaningful dividends, the broker says.
Copyright (c) 2018 CercleFinance.com. All rights reserved.
The information and analyses distributed by Cercle Finance are only intended as decision-making support for investors. Cercle Finance's responsibility may not be entailed, either directly or indirectly following the use of such information and analyses by readers. Any non-professional investor is recommended to consult a professional advisor before making any investment decision. This indicative information in no way constitutes any invitation to sell or buy securities.