Based on the Alibaba stock price prediction from 15 analysts, the average analyst BABA stock price target is USD 158.77 over the next 12 months. Alibaba Group Holding Ltd’s average analyst rating is Strong Buy. Stock Target Advisor’s own Alibaba stock forecast is Slightly Bullish, which is based on 6 positive signals and 4 negative signals. At the last closing, Alibaba Hong Kong stock price was USD 89.37. Alibaba Hong Kong stock price has changed by -11.24% over the past week, -24.31% over the past month and -54.21% over the last year.
Alibaba Group Holding Limited, through its subsidiaries, provides technology infrastructure and marketing reach to help merchants, brands, retailers, and other businesses to engage with their users and customers in the People’s Republic of China and internationally. The company operates through seven segments: China Commerce, International Commerce, Local Consumer Services, Cainiao, Cloud, Digital Media and Entertainment, and Innovation Initiatives and Others. The company was incorporated in 1999 and is based in Hangzhou, the People’s Republic of China.
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.
Alibaba stock price prediction has been displaying stable and consistent annual returns 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 Alibaba stock forecast has delivered better return on equity in the most recent 4 quarters than its peers, placing it in the top quartile.
Superior return on assets:
The Alibaba stock Hong Kong 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 Alibaba stock Hong Kong had positive total cash flow in the most recent four quarters.
Positive free cash flow:
The Alibaba stock Hong Kong had positive total free cash flow in the most recent four quarters.
What we don’t like:
Poor risk adjusted returns:
Alibaba stock Hong Kong is delivering below median risk adjusted returns in 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 Alibaba stock Hong Kong is trading high compared to its peers on a price to earning basis and is above the sector median.
Overpriced on cashflow basis:
The Alibaba stock Hong Kong 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 to buy.