[Company news]Alibaba shares climb after Morgan Stanley raises price target
Created#More Posted time:Jul 4, 2016 15:41 PM
Alibaba shares climb after Morgan Stanley raises price target
Jack Ma, chairman of China's e-commerce giant Alibaba
Shares of Alibaba climbed roughly 2.6 percent Tuesday after Morgan Stanley raised its price target and revenue guidance for the Chinese e-commerce giant.
Morgan Stanley raised its price target for the company by 9 percent to $130.60 from $119.30. Morgan Stanley also raised its revenue forecasts for the company for fiscal years 2017 through 2019. Alibaba's stock was trading near $76 on Tuesday.
In a report, Morgan Stanley cited AliCloud, the company's web services division, as driving significant value by fiscal year 2020. Morgan Stanley increased its AliCloud revenue projections by 24 percent for fiscal year 2017 and 37 percent for fiscal year 2018 to reflect faster revenue growth, and predicted that by fiscal year 2020 AliCloud would account for 19 percent of Alibaba's revenue.
The report also praised Alibaba's move towards better use of data, noting that the "foundation is set to transform Alibaba into a leading data commerce company."
More broadly, the company's shares are down 6 percent since Jan. 1.
Alibaba in 2016
Disclosure: Morgan Stanley has "a significant financial interest in the debt securities" of Alibaba.