Alibaba Group Holding Limited (BABA:NYE) Analysts rate with a Strong Buy, $173 target

STA Research
by: STA Research
Alibaba Group Holding Limited

Based on the Alibaba Group Holding Limited stock forecasts from 19 analysts, the average analyst target price for Alibaba Group Holding Limited is USD 173.27 over the next 12 months. Alibaba Group Holding Limited’s average analyst rating is Strong Buy. Stock Target Advisor’s own stock analysis of Alibaba Group Holding Limited is Neutral, which is based on 4 positive signals and 4 negative signals. At the last closing, Alibaba Group Holding Limited’s stock price was USD 87.23. Alibaba Group Holding Limited’s stock price has changed by +0.75% over the past week, +0.74% over the past month and -58.55% over the last year.

Robert W. Baird just recently maintained the Outperform rating on the stock, but lowered the target to $144 from $160 per share.

Alibaba Group Holding Limited, through its subsidiaries, provides merchants, brands, retailers, and other businesses with technical infrastructure and marketing reach to engage with their users and consumers in the People’s Republic of China and around the world. Core Commerce, Cloud Computing, Digital Media and Entertainment, and Innovation Initiatives and Others are its four segments. The firm was founded in 1999 and is headquartered in Hangzhou, People’s Republic of China. Hangzhou, China, 311121 (969 West Wen Yi Road)

 

What we like:

High market capitalization

This is one of the largest entities in its sector and is among the top quartile. Such companies tend to be more stable.

Low volatility

The stock’s annual returns have been stable and consistent compared to its sector peers (for a hold period of at least 12 months) and are in the top quartile. Although stability is good, also keep in mind it can limit returns.

Positive cash flow

The company had positive total cash flow in the most recent four quarters.

Positive free cash flow

The company had positive total free cash flow in the most recent four quarters.

 

What we don’t like:

Poor risk-adjusted returns

This company is delivering below median risk-adjusted returns to its peers. Even if it is outperforming on returns, the returns are unpredictable. Proceed with caution.

Below median dividend returns

The company’s average income yield over the past 5 years has been low compared to its peers. However, it is not a problem if you are not looking for income.

Overpriced compared to earnings

The stock is trading high compared to its peers on a price to earning basis and is above the sector median.

Overpriced on a cash flow basis

The stock is trading high compared to its peers on a price to cash flow basis. It is priced above the median for its sectors. Proceed with caution if you are considering buying.

 

 

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