Wall Street analysts are lifting their price targets on Alibaba Group Holding Ltd (NYSE:BABA) and Amazon.com, Inc. (NASDAQ:AMZN), as they are unsurprisingly bullish on both e-commerce giants. Let’s take a quick look:
Alibaba Gets Price Target Hike Ahead of Earnings
Alibaba will be showing off its third fiscal quarter earnings for 2018 come February 1, and China Renaissance analyst Ella Ji is exceedingly confident on the Chinese e-commerce giant ahead of its print. The analyst raised her price target on BABA to $230 (from $200), while reiterating a Buy rating on the stock. (To watch Ji’s track record, click here)
Ji commented, “We expect a robust top line, but weaker y/y margin performance. Investment and exploration of new retail models should continue to overhang its 2018 margins, together with drags from Cainiao and elevated traffic acquisition cost and content cost. Yet, we stay positive on BABA’s performance in the long-term, expecting 1) there will be stronger monetization opportunities once its investment in new retail is ready for scalable franchise models, and 2) the consolidation of Cainiao potentially creates another layer of value to merchants on BABA’s platform. Our financial forecasts are also updated to reflect Cainiao’s consolidation, healthy revenue expectation, FX, and conservatism on margins.”
Alibaba stock has one of the best ratings by the Street. TipRanks reveals that BABA has a Strong Buy analyst consensus rating with 16 back-to-back buy ratings in the last three months. Meanwhile the average analyst price target of $217.15 suggests the stock still has upside potential of just over 9% from the current share price for the next 12 months.
Can Amazon stock reach $1,800? DA Davidson Believes So
Analyst Tom Forte at DA Davidson is setting a high bar for Amazon to put ace fourth quarter earnings on the table come February 1. As such, the analyst raised his price target on AMZN to $1,800 (from $1,500), while reiterating a Buy rating on the stock. (To watch Forte’s track record, click here)
Forte opined, “We forecast $5.2B in sales for Whole Foods, which would represent 8.6% of total revenues for the quarter. (Recall, Amazon closed the Whole Foods acquisition in August 2017.) Overall, as we have previously noted, we see Amazon’s efforts at Whole Foods as iterative with the long-term goal of maximizing its grocery sales and leveraging an increased physical store presence to generate more online sales, too.”
Most analysts are right there with Forte backing this retail stock, with TipRanks analytics revealing AMZN as a Strong Buy. Out of 34 analysts polled in the last 3 months, 33 are bullish on Amazon stock while only 1 remains sidelined.