Summit Research Initiates Buy on Alibaba Group Holding Ltd; Sees 17% Upside for the Stock
In a research report issued April 20, Summit Research analyst Henry Guo initiated coverage on shares of Alibaba Group Holding Ltd (NYSE:BABA) with a Buy rating and price target of $97, which represents a potential upside of 17% from where the stock is currently trading.
Guo noted, “We are positive on the eCommerce market in China and Alibaba’s favorable position in this rapidly growing market. Longer term for Alibaba, we expect to see strong top-line growth, driven by continuing market share gains, further penetration in lower tier cities, and stable margin trends, driven by improving take rates and operating leverage. We consider Alibaba a company with a rare combination of massive scale, strong growth and high margin in the global internet space.”
According to TipRanks.com, which measures analysts’ and bloggers’ success rate based on how their calls perform, analyst Henry Guo has a total average return of 12.6% and a 47.1% success rate. Guo is ranked #1157 out of 3575 analysts.