Analysts rate Alibaba Group Holding Ltd (BABA:NYE) with a Strong Buy rating and $158.00 target

STA Research
by: STA Research
Alibaba Group Inc

Deutsche Bank Capital raises Alibaba Group Holdings target from $155 to $160

Based on the Alibaba stock forecast from 14 analysts, the average analyst target price for Alibaba Group Holding Ltd is USD 158.00 over the next 12 months. Alibaba Group Holding Ltd.’s average analyst rating is Strong Buy. Stock Target Advisor’s own stock analysis of Alibaba Group Holding Ltd is Slightly Bullish, which is based on 6 positive signals and 4 negative signals. At the last closing, Alibaba Group Holding Ltd.’s stock price was USD 99.89. Alibaba Group Holding Ltd.’s stock price has changed by +9.15% over the past week, -1.17% over the past month and -39.55% over the last year.

About Alibaba Group Holding Ltd (BABA:NYE)

Through its subsidiaries, Alibaba Group Holding Limited offers technology infrastructure and marketing reach to assist retailers, brands, merchants, and other companies in engaging with their users and consumers in the People’s Republic of China and beyond. China Commerce, International Commerce, Local Consumer Services, Cainiao, Cloud, Digital Media and Entertainment, and Innovation Initiatives and Others are the company’s seven business segments. It runs the social commerce platform Taobao Marketplace, the third-party online and mobile commerce platform Tmall for brands and retailers, the monetization platform Alimama, the retail marketplace AliExpress, the e-commerce platforms Lazada, Trendyol, and Daraz, the self-operated retail chain Freshippo, and the import e-commerce platform Tmall Global. Additionally, the business runs the following platforms: Ele.me, an on-demand delivery and local services platform; Koubei, a restaurant and local services guide platform; and Fliggy, an online travel platform. Taoxianda is an online-offline integration service for FMCG brands and third-party grocery retail partners. It also provides display, in-feed, and pay-for-performance marketing services, as well as Taobao Ad Network and Exchange, a real-time online bidding marketing exchange. Additionally, the business offers services for elastic computing, storage, networks, security, databases, big data, and IoT. Additionally, it runs Youku, an online video platform, Alibaba Pictures, and other content platforms that offer online videos, films, live events, news feeds, literature, music, and others, as well as Amap, a mobile app for real-time traffic information, digital maps, and navigation, DingTalk, a mobile app for business efficiency, and Tmall Genie, a smart speaker. The business was established in 1999 and has its headquarters in Hangzhou, People’s Republic of China. Location: Hangzhou, China, 311121, 969 West Wen Yi Road

 

What we like:

High market capitalization

Alibaba stock forecast: 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.

Superior return on equity

The company management has delivered a better return on equity in the most recent 4 quarters than its peers, placing it in the top quartile.

Superior return on assets

The company management has delivered a better return on assets in the most recent 4 quarters than its peers, placing it in the top quartile.

Positive cash flow

Alibaba stock forecast: 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

Alibaba stock forecast: 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-earnings basis and is above the sector median.

Overpriced on a cash flow basis

Alibaba stock forecast: 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.

Disclaimer

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