Axiom Initiates Buy Rating on Alibaba Group Holding Ltd; Sees 30% Upside for the Stock


In a research report published today, Axiom analyst Victor Anthony initiated coverage on shares of Alibaba Group Holding Ltd (NYSE:BABA) with a Buy rating and a $110 price target, which represents a potential upside of 30% from where the stock is currently trading.

Anthony noted, “The valuation on the stock has been reset following concerns of counterfeit items and a very public spat with the China’s State Administration for Industry & Commerce, a December quarter that missed Street monetization expectations on both desktop and mobile, concerns of fake items on the site, and slowing growth in China, the confluence of which have led to a 30% contraction in the share price from highs. The shares have reached what we see as oversold levels. Our checks with Chinese e-commerce executives suggest that Alibaba is likely to overcome these recent woes. The lock-up expiration next week should create share price volatility but as with most lock-ups we see the supply being absorbed over time with consistent execution.”

According to TipRanks.com, which measures analysts’ and bloggers’ success rate based on how their calls perform, analyst Victor Anthony has a total average return of 18.9% and a 73.4% success rate. Anthony has a -25.4% average return when recommending BABA, and is ranked #47 out of 3508 analysts.

Stay Ahead of Everyone Else

Get The Latest Stock News Alerts