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MKM lowers Alibaba target on core business

Published 11/13/2018, 03:11 PM
© Reuters.  MKM lowers Alibaba target on core business
BABA
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  • MKM Partners maintains a Buy rating on Alibaba (NYSE:BABA) but lowers the target from $270 to $245.
  • Analyst Rob Sanderson: “Most of our revision is lower profit from the core commerce segment as management postpones monetization efforts and braces for a possible economic slowdown.”
  • The firm rebuilt its model and valuation framework to remove the core marketplace business from the emerging commerce businesses.
  • The new target “values marketplace profits at 25x with about $55 per share of value in Ant, Cloud, other businesses and cash.”
  • Alibaba shares are up 2.7% to $146.61.
  • Previously: Alibaba sets Singles' Day sales record (Nov. 11)
  • Now read: Alibaba's Shocking Price


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