KeyBanc Capital Markets is lowering its estimates for Alibaba Group Holding Ltd - ADR (NYSE: BABA) in the second half of the year.
Traffic shifts to merchant livestreaming could have a negative impact on the Chinese e-commerce giant's monetization, an analyst said.
The KeyBanc Analyst: Hans Chung reiterated an Overweight rating on Alibaba and raised the price target from $255 to $285.
The KeyBanc Takeaways: “The shift to live streaming traffic/GMV could represent more upside from a LT perspective, given higher engagement and conversion than regular channels,” Chung said in a Monday note. (See his track record here.)
COVID-19 has structurally changed the ways of doing businesses and has been accelerating digitalization, the analyst said.
DingTalk, with over 100 million daily active users, presents a big potential for enterprise value in the long run, he said.
BABA Price Action: Alibaba shares were down 0.54% at $247.25 at last check Wednesday.
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|Jul 2020||Needham||Initiates Coverage On||Buy|
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