- Believing the company still has plenty of room to grow its Taobao/Tmall GMV, and mobile take rate, Bernstein's Carlos Kirjner has launched coverage on Alibaba (BABA +3.6%) with an Outperform rating and $120 target.
- Kirjner thinks Alibaba's mobile monetization rate can match or exceed its PC rate long-term - Alibaba's mobile take rate was 1.73% in FQ4 (calendar Q1), and its total take rate 2.17%. He also argues rising Chinese incomes, Internet penetration, and e-commerce adoption will continue acting as secular growth drivers, and that a slower hiring pace will boost margins.
- Shares are at their highest levels since January, and up 17% since Alibaba posted an FQ4 beat on the back of 40% Chinese marketplaces GMV growth and a stabilizing take rate on May 7.
Alibaba tops $94 following bullish Bernstein coverage
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| Symbol | Last Price | % Chg |
|---|---|---|
| BABA | - | - |
| Alibaba Group Holding Limited | ||