BofA Bullish On Alibaba As Investor Conference Kicks Off
During the first day of its investor conference Monday, Alibaba Group Holding Ltd (NYSE: BABA) is highlighting an expanded portfolio of marketing tools for merchants.
The company continues to benefit from the shift to online by overseas merchants and users during the coronavirus pandemic, according to BofA Securities.
The Alibaba Analyst: Eddie Leung maintained a Buy rating on Alibaba with an unchanged $326 price target.
The Alibaba Thesis: The company’s expanded array of marketing tools, which include “search, recommendation feeds, live broadcasting, short videos, and interactive tools like casual games and augmented reality,” allows merchants to target customers at different stages of their journey, Leung said in a note.
The latest initiatives should do the following, the analyst said:
Increase user engagement and conversion
Cater to the various needs of merchants and brands
Increase monetization opportunities
“The upgrade of its flagship mobile app has merged traditional display ads into information feeds, which can better support a variety of media formats including video, and emphasizes a portrait layout,” he said.
The e-commerce infrastructure established by Alibaba, along with its eco-system partners, enables the company to “capture the growth opportunities in various cross-border and overseas businesses,” according to BofA.
BABA Price Action: Shares of Alibaba were trading 1.71% higher at $275.75 at last check Monday.
Photo courtesy of Alibaba.
Latest Ratings for BABA
Sep 2020 | Loop Capital | Maintains | Buy | |
Aug 2020 | Argus Research | Maintains | Buy | |
Aug 2020 | B of A Securities | Maintains | Buy |
View More Analyst Ratings for BABA
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