Alibaba (BABA) is set to report Q1 results tomorrow before the bell with a conference call slated for 7:30am ET.
Cap IQ Consensus estimates Q1 EPS of $0.93 (vs. $0.74 in Q1FY17), w/revs of $7.02 bln (+49% Y/Y).
Investor Day Highlights:
At their June 8th Investor Day (see below) management said that they expect 45-49% of revenue growth in FY18 which equates to $33.72-$34.65 bln vs. the $34.77 bln Capital IQ Consensus Estimate.
Options Vol
Based on BABA options, the current implied volatility stands at ~ 32%, which is 14% higher than historical volatility (over the past 30 days).
Analyst Actions
- Barclays raises their tgt to $141 from $132 (May 19).
- Needham raises their tgt to $155 from $140 (June 8).
- Target raised to $175 from $140 at The Benchmark Company reflecting earnings upside following co's Investor Day (June 12).
- Resumed with an Overweight at JP Morgan; tgt $190 (June 27).
- Target raised to $201 from $158 at Deutsche Bank (July 3).
- Initiated at Chinese-based China Merchants Bank with a Buy, $190 tgt.
- Stifel raises their BABA tgt to $180 from $165. They are adding Alibaba to the Stifel Select List ahead of earnings (August 15).
TECHS:
BABA is up +81% for the year, so buyers remain in firm control with price trending above its rising 50-day ma's. A poor response to earnings will bring some recent support in play down to 147.
