Alibaba

Alibaba: CLSA initiates coverage with Buy call and TP of US$120.00. Very big initiation report, near 160 pages, but essentially the investment pt is that with an 81% share in China and being double that of Amazon’s size, Alibaba could beat Walmart by being the first to reach US$1tn sales in FY20. Taobao is the key to its success with the widest product selection. Tmall will be the next big driver as the home of brands. Global expansion will create more value for the brand, and the house proprietary studies reinforces its confidence in Alibaba’s growth potential.