Alibaba Group Holding Ltd (BABA): Analyst Predicts Further Upside Lies Ahead

Tigress' Ivan Feinseth is enticed by BABA's potential to grow revenue and penetrate new markets across the globe.


Alibaba Group Holding Ltd (NYSE:BABA) knows how to monetize its core e-commerce platform all while bolstering prospects for more gains ahead in segments from retail to digital content to logistics. The stock has shot up nearly 96% in value in the course of the last 12 months, and with good reason.

As monetization and growth opportunities are swirling, China’s king of e-commerce has a business performance that keeps revving up, and Tigress analyst Ivan Feinseth is taking notice.

As such, the analyst maintains a Buy rating on Alibaba stock without suggesting a price target. (To watch Feinseth’s track record, click here)

Feinseth is impressed with the e-commerce player, highlighting, “Business Performance continues to accelerate as BABA leverages its core e-commerce platform and develops initiatives in new retail and other future growth opportunities.”

Meanwhile, “Chinese robust telecommunication infrastructure continues to enable BABA to dominate the fast-growing Chinese e-commerce market,” adds the analyst, who cheers that the ultimate anti-singles shopping celebration in China, Singles Day, was advantageous to the company. In the span of Singles Day 2017, BABA earned past $25 billion in revenue, marking a 40% year-over-year rise that nearly realized the $29 billion in revenue the company brought to the table in the last four quarters that closed out September of this year.

Investors should expect more gains to hit, especially as the company fleshes out its strategy for “New Retail,” where the company looks to “bridge” the gap between online and off-line shopping through data analytics coupled with artificial intelligence. Alibaba seeks more insight into shopping patterns to be able to better predict them. Likewise, the company is firing up growth on back of “large corporate adoption onto its Alibaba Cloud platform,” the analyst explains.

Overall, the future looks promising for the company, as Feinseth underscores: “BABA continues to experience strong growth in its core e-commerce business including a record Singles Day 2017 earlier this month. BABA also continues to yield strong returns from ongoing investments in new technology development, strategic acquisitions, and strategic partnerships. We believe BABA can continue to grow revenue and penetrate new markets, both in China and internationally. We believe BABA can continue to invest to drive increasing return on capital, along with growing economic profit and greater shareholder value creation. We believe further upside exists from current levels.”

TipRanks provides Alibaba with one of the strongest analyst consensus ratings, considering all 15 analysts polled in the last 3 months are bullish on the Chinese e-commerce king. With a return potential of nearly 18%, the stock’s consensus target price stands at $208.69.