Analysts See Considerable Upside In Alibaba Despite Price Target Cut - Here's Why
Raymond James analyst Aaron Kessler downgraded Alibaba Group Holding Ltd (BABA) to Outperform from Strong Buy with a price target of $240, down from $300, implying a 62.1% upside.
- While Kessler remains positive on Alibaba long-term and believes valuation remains attractive, the analyst feels the recovery in shares could take longer given the recent slowing of e-commerce growth combined with continued regulatory actions across China.
- Though some of the issues are transitory, Kessler believes these factors weigh on consumer retail growth near-term, and there is higher uncertainty in growth recovery.
Keybanc analyst Hans Chung maintains Alibaba with an Overweight and lowers the price target from $250 to $200, indicating a 35.1% upside.
- Chung expects lower CMR on slower GMV growth for Q2 due to weaker than expected macro.
Price Action: BABA shares traded lower by 0.71% at $147 in the market session on the last check Friday.
Latest Ratings for BABA
| Date | Firm | Action | From | To |
|---|---|---|---|---|
| Oct 2021 | Raymond James | Downgrades | Strong Buy | Outperform |
| Oct 2021 | Keybanc | Maintains | Overweight | |
| Aug 2021 | UBS | Maintains | Market Perform |
Disclosure: © 2021 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.
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These opinions show why it is important to do more than look at the past few hours of trading to understand the probable future of a given stock, and if the choice should be buy, sell, hold, or pass.
Unless one is committed to random wagers with no prediction of win or lose.
Baked in from Friday.