Alibaba Group Holding Limited (NYSE:BABA) is rated as Buy by analysts at SunTrust. The firm was pushed by the stock performance to change their PT view from $180 to $200 on January 31. Analysts at Stifel, maintained the company shares at Buy on January 31 but switched target price from $175 to $180. Brokerage firm Nomura, looks cautious as they stick to prior recommendation of Buy, in a call on January 31. However, they did change the target price from $200 to $205. Macquarie, reiterated their call for Outperform, on January 31. On the other hand, they had set new target price to $224 versus $220.
Alibaba Group Holding Limited (BABA) hit an intraday high Friday at $167.65. The shares finished at $167.36, after trading as low as $163.75 earlier in the session. It rose 0.24% in recent trade and currently has a stock-market value of $432.79B. Trading activity significantly weakened as the volume at ready counter decreased to 8,324,160 shares versus 14,832,115 in average daily trading volume over the past 20 days. So far this year, the volume has averaged about 15,699,581 shares. The stock is now 28.97% above against its bear-market low of $129.77 on December 24, 2018. It has retreated -26.49% since it’s 52-week high of $211.7 reached in June. Now the market price is down -7.18% on the year and up 22.1% YTD.
BABA’s 50 day simple moving average (SMA 50) price is $151.9 and its 200-day simple moving average (SMA 200) price is $169.42. The company’s stock currently has a total float of 752.26M shares. Its weekly volatility is hovering around 2.19% and felt 2.66% volatility in price over a month. On the upside, the share price will test short term resistance at around $168.76. On a downside, the stock is likely to find some support, which begins at $164.86. The failure to get near-term support could push it to $162.35.
Wall Street’s most bullish Alibaba Group Holding Limited (NYSE:BABA) analysts are predicting the share price to blow past $285 per share during the next 12 months. The current median share price forecast by them is $200, suggesting that the stock could increase 19.5% in that time frame. The average price target of $204.94 calls for a nearly 22.45% increase in the stock price.
When looking at valuations, Alibaba Group Holding Limited (BABA) has a pricey P/E of 42.65x as compared to industry average of 32.59x. Moreover, it trades for 24.98 times the next 12 months of expected earnings. Also, it is trading at rather expensive levels at just over 6.92x price/book and 8.45x price/sales. Compared to others, Alibaba Group Holding Limited is in a different league with regards to profitability, having net margins of 16.8%. To put some perspective around this, the industry’s average net margin is 24.92%. BABA’s ROE is 15.2%, which is also considerably worse than the industry’s ROE of 20.34%. It’s also very liquid in the near term, with a current ratio of 1.4. The stock has a debt/capital of 0.33.
Shares of Alibaba Group Holding Limited (BABA) have gained 15.7% since the company’s last earnings report. Over the past 12 fiscal quarters, Alibaba Group Holding Limited (NYSE:BABA) has topped consensus earnings estimates in 7 quarters (58%), missed earnings in 5 quarters (41%), whereas at 0 occasion EPS met analyst expectations. BABA last reported earnings on January 30, 2019 when it released Dec-18 results that exceeded expectations. The company raked in $12.19 per share, 52.57% change on the same period last year. That was better than consensus for $11.29. Revenue for the recent quarter stood at $117.28 billion, up 41% on last year and below the $118.99 billion predicted by analysts. For this quarter, Wall Street analysts forecast revenue in a range of $109.8 billion to $114.12 billion, which should be compared with $91.31 billion generated last year. EPS is seen in a range of $8.28 to $11.38, against the $12.56 reported a year ago.