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Analysts are weighing in on the industrial giant General Electric Company (NYSE:GE) and e-commerce giant Alibaba Group Holding Ltd (NYSE:BABA), with mixed ratings and views.
General Electric Company
Oppenheimer analyst Christopher Glynn weighed in today with his views on General Electric, after the company released its third-quarter results, posting EPS of $0.29, topping the consensus estimate of $0.26. The analyst reiterated a Market Perform rating on the stock, without providing a price target.
Glynn noted, “Operating EPS from sustaining operations of $0.29 compared to our in-line $0.26 estimate, including $0.01 benefit each from: (a) lower industrial tax rate; and (b) $0.02 restructuring vs. $0.03 expected. Industrial revenue declined 1% reported and rose 4% organic. Industrial OM expanded 100 bps to 17.3%, beating our 16.5% estimate, and supporting 5% industrial operating profit growth (9% organic), that edged our 3% estimate and also contributed $0.01 of EPS upside. Backlog declined $2B sequentially to $370B, as reported total orders declined 26% (ytd down 4% organic), inclusive of significant FX headwind and a very strong comparison (LY included $6B of large 1x locomotive and aricraft engine orders), coupled with 32% organic O&G drop.”
According to TipRanks.com, which measures analysts’ and bloggers’ success rate based on how their calls perform, analyst Christopher Glynn has a total average return of 5.2% and a 53.8% success rate. Glynn has a 19.6% average return when recommending GE, and is ranked #592 out of 3779 analysts.
Out of the 11 analysts polled by TipRanks, 7 rate General Electric stock a Buy, while 4 rate the stock a Hold. With a return potential of 6.7%, the stock’s consensus target price stands at $30.33.
Alibaba Group Holding Ltd
In a research report published Friday, RBC Capital analyst Mark Mahaney reiterated an Outperform rating on shares of Alibaba Group, with a price target of $80, after the company announced it’s made an offer to acquire the remaining shares of Youku Tudou it doesn’t currently own for $26.60 in an all-cash deal.
Mahaney noted, “Financially, we don’t believe the transaction will be that material to BABA. Alibaba’s CFO stated on the deal call that the acquisition would not be impactful to BABA’s FY16 estimates. She added that while Youku is not profitable, its integration should not have a material impact on Alibaba’s EPS or margin structure. Strategically, we view this as part of a broader effort by Alibaba to diversify its revenue streams and broaden its exposure to secular Internet trends in China. We believe synergies are likely to be very limited between Alibaba and Youku, but we do view Youku as one of the stronger digital media assets in China. Our overall take on the deal is neutral.”
According to TipRanks.com, which measures analysts’ and bloggers’ success rate based on how their calls perform, analyst Mark Mahaney has a total average return of 21.5% and a 62.8% success rate. Mahaney has a -20.1% average return when recommending BABA, and is ranked #6 out of 3779 analysts.
Out of the 34 analysts polled by TipRanks, 32 rate Alibaba Group stock a Buy, while 2 rate the stock a Hold. With a return potential of 34%, the stock’s consensus target price stands at $98.35.