Bernstein Starts Alibaba (BABA) at Outperform

Bernstein initiates coverage on Alibaba (NYSE: BABA) with a Outperform rating and a price target of $117.00.

Analyst Bhavtosh Vajpayee comments "Alibaba enjoys a dominant position among China's ecommerce platforms, has an early lead in payments and cloud, is growing video, and is exploring international markets. We expect its revenue stack to drive growth for longer than many foresee. Within our coverage, Alibaba is most likely to stay north of 20% annual revenue growth even three years hence. Near term, we see investments in video dampening margins — we are above consensus on revenues, but below for margins in the coming few quarters. While Alibaba arguably has a more complex organizational structure, we believe that the longevity of its bets will be gradually appreciated, driving stock performance."

For an analyst ratings summary and ratings history on Alibaba click here. For more ratings news on Alibaba click here.

Shares of Alibaba closed at $96.75 yesterday.

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