Wells Fargo Securities restarted coverage on Alibaba ( BABA ), the China e-commerce company it sees as accelerating retail growth, advertising, video and other efforts to “seemingly unseen proportions,” said the Wells Fargo report to clients Wednesday.
[ibd-display-video id=2322964 width=50 float=left autostart=true]Wells Fargo also restarted coverage on China e-commerce company JD.com ( JD ) and China search-engine leader Baidu ( BIDU ).
Alibaba, JD.com and Baidu are three of the four largest internet companies in China, the other being Tencent Holdings ( TCEHY ).
Wells Fargo analyst Ken Sina initiated coverage on Alibaba with an overweight rating and price target of $225. Alibaba stock climbed 2.4% to close at 170.99 on the stock market today .
“Our recommendation of Alibaba is based on evidence of its clear data scale, leadership in China cloud, and the opportunity we see for the company to apply advances to both its core businesses and, through AliCloud, to new industries,” Sena wrote in a research note to clients.
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JD.com also received an overweight rating and price target of 50. JD.com stock fell 1.5% to finish the regular trading day at 39.71.
“While JD does trail Alibaba in total scale and cloud presence, our view is that there is room enough for a second player,” Sena wrote.
He gave Baidu an overweight rating and price target of 290.
Baidu shares ended the session up 1.4% to close at 239.82.
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