Alibaba Analyst Lowers Second-Half Estimates, Raises Price Target In Shifting E-Commerce Landscape

KeyBanc Capital Markets is lowering its estimates for Alibaba Group Holding Ltd - ADR 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.