Alibaba (BABA) shares jumped Monday after it received several price target increases in the wake of its strong quarterly report.
XAlibaba stock was up another 2.5% Monday, near 193.90 during morning trading on the stock market today. That came on top of a 3.5% share climb Friday after results posted, and the stock has gained 65% over the last 12 months.
The e-commerce giant maintained a long string of double-digit growth in revenue and earnings in its fiscal fourth-quarter report. That prompted Raymond James analyst Aaron Kessler to raise his price target on the China e-commerce leader to 250 from 240, with a strong buy rating.
"Alibaba reported strong March quarter results highlighted by continued strength in China retail commerce growth and cloud momentum," Kessler wrote in a note to clients.
Early Friday, the company reported revenue of $9.9 billion, up 76% from the year-ago quarter and its strongest growth in more than four years. Adjusted earnings rose 44% to 91 cents per share. Both revenue and earnings topped analyst estimates, for the period ended March 31. The company expects revenue growth for fiscal year 2019 exceeding 60%, or more than 50% excluding acquired companies.
New Retail
KeyBanc Capital Markets analyst Hans Chung raised his price target on Alibaba to 235 from 219. He maintained a rating of overweight. He expects the company's new retail initiatives to be the key driver of revenue growth in fiscal 2019.
Among its retail initiatives is Hema, a chain of digitized physical supermarkets. The idea is to draw customers deeper into Alibaba's consumer-facing ecosystem. Hema added 14 stores in the quarter, for a total of 37. Management expects the pace to accelerate.
Oppenheimer analyst Jason Helfstein raised his price target to 230 from 220, with a rating of outperform. Wells Fargo Securities analyst Ken Sena also raised his price target to 230 from 220, with an outperform rating.
"Our recommendation of Alibaba factors its large addressable, scaled advantage in transaction and data, and its leadership in cloud computing, where this quarter saw yet another triple-digit growth rate," Sena wrote. Cloud revenue of $699 million, was up 103% from the year-ago period.
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The post Alibaba Stock Gets Price-Target Increases On Strong Quarterly Results appeared first on Investor's Business Daily.
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