Atlantic Equities - Alibaba Group Holding Ltd. Sponsored ADR (A117ME) Revenue upside to offset continued investment

Report

Atlantic Equities

James Cordwell

Revenue upside to offset continued investment

We remain positive on Alibaba as we see revenue upside, which should more than offset concerns regarding near-term pressure on profitability from investment in longer-term growth initiatives. Valuation also remains reasonable, with our $215 YE18 PT requiring 15x CY19 EV/EBITDA for the core China retail business, though we prefer the western peers at this point, particularly Facebook, given a lower valuation and more conservative expectations for that stock.

27/11/2017 6 EN

Underlying

Alibaba Group Holding Ltd. Sponsored ADR

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US01609W1027 Stuttgart Stock Exchange Cayman Islands

Provider

Atlantic Equities

Formed in 2003 by an established team from Cazenove, one of the most respected investment banks in the UK, Atlantic Equities conducts and publishes fundamental, bottom up research on mid and large cap US companies.

Atlantic provide order execution through a wide range of DMA products and algorithmic trading suites.

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Analysts

James Cordwell

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