Alibaba Group Holding Ltd (NYSE:BABA) has definitely given a nice earnings boost to the investment banking arm of Credit Suisse Group AG (ADR) (NYSE:CS), which was one of the six underwriters for the company. In fact it will prove to be more than just a revenue boost for the bank going forward, as being part of such a large transaction adds even more credibility and esteem to the bank’s name. Credit Suisse Group AG (ADR) (NYSE:CS)’s CEO, Brady Dougan, shared some of his thoughts on CNBC.
” […] We had a long relationship with them, so we do a number of different things with them. I think one of the positives around the transactions with Alibaba Group Holding Ltd (NYSE:BABA) this quarter was the fact that it was in fact a transaction that worked across the bank, so it included both the private banking side and the investment banking side […],” said Dougan.
Credit Suisse Group AG (ADR) (NYSE:CS)’s CEO dodged the question, when he was asked about how much exactly was the deal worth for the bank. His comment revolved around reiterating the smoothness of the whole operation.
” […] It was an important transaction, it was obviously a landmark transaction in that it was the largest IPO ever and as you said, it was executed well, which is to great credit of the company, and also to the investment bank […],” remarked Dougan.
Alibaba Group Holding Ltd (NYSE:BABA) has still a long way to go and perhaps more market turmoil to face, before it can be seen how much storms can the company with stand, and also how good a job Credit Suisse Group AG (ADR) (NYSE:CS) did.
The Chinese e-commerce giant has received mixed opinions from analysts, some of which think that the stock is undervalue, while others have substantially higher target price for Alibaba Group Holding Ltd (NYSE:BABA) than the value that it is currently trading at now. One of the main reasons for this is the lack of comprehensive financial data available on the company.
However, that is about to change soon as the company is set to release its first ever Q3 Earnings Release on 4th November.
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