Needham lowered the target on Alibaba(BABA:NYE) to $230 from $330

STA Research
by: STA Research

Needham & Company LLC lowered the target on Alibaba to $230 from $330, and kept the Buy rating on the company’s stock.

Based on the Alibaba Group Holding Limited stock forecasts from 21 analysts, the average analyst target price for Alibaba Group Holding Limited is USD 241.93 over the next 12 months. Alibaba Group Holding Limited’s average analyst rating is . Stock Target Advisor’s own stock analysis of Alibaba Group Holding Limited is Bullish , which is based on 7 positive signals and 3 negative signals. At the last closing, Alibaba Group Holding Limited’s stock price was USD 136.62. Alibaba Group Holding Limited’s stock price has changed by -29.92 % over the past week, -41.08 % over the past month and -49.42 % over the last year.

What to 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 is 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 better return on equity in the most recent 4 quarters then its peers, placing it in the top quartile. Superior return on assets The company management has delivered better return on assets in the most recent 4 quarters than its peers, placing it in the top quartile. 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. Underpriced on free cash flow basis The stock is trading low compared to its peers on a price to free cash flow basis and is in the top quartile. It may be underpriced but do check its financial performance to make sure there is no specific reason.

What to not like:

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. Poor capital utilization The company management has delivered below median return on invested capital in the most recent 4 quarters compared to its peers. Highly leveraged The company is in the bottom half compared to its sector peers on debt to equity and is highly leveraged. However, do check the news and look at its sector and management statements. Sometimes this is high because the company is trying to grow aggressively.

 

Stock Target Advisor is not a broker/dealer, investment advisor or a platform for making stock buying or selling decisions. Our goal is to democratize and simplify financial information through automated analysis, aggregation of stock information and education in order to help investors with their own research. No content in our site, blogs or newsletters constitutes – or should be understood as constituting – a recommendation to enter in any securities transactions or to engage in any of the investment strategies presented in our site content. We also cannot guarantee the accuracy of any information presented on our site and in our analysis

Leave a Reply

Your email address will not be published. Required fields are marked *