Baird Sees 'Fast Recovery' For Alibaba From Coronavirus, Ups Price Target

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Baird analyst Colin Sebastian raised his price target for Alibaba Group Holding (BABA) to $230 from $200 after the company reported fiscal Q3 results above consensus expectations. The stock in afternoon trading is down 1%, or $2.15, to $222.28. Strong user engagement trends and continued gains in lower-tier cities drove the upside, Sebastian tells investors in a post-earnings research note.

Despite concerns over the coronavirus, which management noted is having a significant negative impact on near-term operations, Alibaba remains very well positioned for medium and long-term growth, contends Sebastian. He maintains an Outperform rating on the shares. The analyst believes Alibaba is well-positioned for a "fast recovery" by leveraging its commerce platform, logistics and delivery network, and increasing physical retail presence.

Disclosure: None.

 

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