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TipRanks

About the Author TipRanks

TipRanks is the most comprehensive dataset of analysts, hedge fund managers, financial bloggers, and corporate insiders. We provide answers to the most basic questions: are they reliable and accurate? What is their track record? Are there better opinions out there? And, the most importantly- should I listen to this particular person? TipRanks stops the guessing game and shows you an updated and accurate view so you can make the most educated investment decisions. TipRanks has become the go-to tool for part-time to professional investors and everyone in the financial world.

Does Alibaba (BABA) Ever Disappoint?


By Harriet Lefton, 

Which top stocks are Wall Street analysts the most bullish on? Stocks with no “hold” or “sell” ratings and a pure “Strong Buy” analyst consensus. These are the stocks that make the most compelling investing opportunities and are definitely worth keeping a close eye on.

Using TipRanks powerful stock screener, I set out to pinpoint stocks that command the unanimous support of the Street. You can customize the screener settings to match your investment strategy. In this case, I selected filters for stocks of all market cap size with a “Strong Buy” consensus from analysts and best-performing analysts alike. These are the top analysts with the highest success rate and average return.

I can also specifically select stocks with big upside potential from the current share price. This is based on the upside potential from the current share price to the average analyst price target.

Does Alibaba (NYSE:BABA) ever disappoint? With 15 back-to-back analyst ‘buy’ ratings and an average price target of $250 (22.6% upside potential) it looks like the answer is a resounding no.

On May 18 top-rated MKM Partners’ analyst Rob Sanderson has just ramped up his price target from $260 to $280. He is now predicting big upside potential of 44% from the current share price. Bear in mind that last year share prices exploded over 60%.

Sanderson is feeling the heat following the company’s “strong quarter and encouraging outlook”. Most notably he believes “the narrative on the stock is shifting from concern over investment spending to a focus on profit growth and long-term opportunity.” For Sanderson the company’s big spending projects (think the Cainiao logistics platform, Lazada in Southeast Asia, and food delivery platform Ele.me), are “absolutely” worthwhile.

And don’t forget Alibaba’s new retail strategy. The company’s goal to mix online and offline retail is changing the face of retail in China. For example, smart pop-up stores are connected to BABA’s Alipay online payment system while facial recognition technology is used to track customers. According to Sanderson: “We think this business will ultimately be as high a margin, or better than the existing marketplace model.”