Company Update (NYSE:BABA): Alibaba Group Holding Ltd Received Notices From Zhejiang Price Bureau
A statement from Alibaba Group Holding Ltd (NYSE:BABA) is below:
“Today Alibaba Group received notices from Zhejiang Price Bureau that the company has been fined RMB500,000 (approx. US$81,000) for matters related to Singles Day pricing by third-party sellers on our Tmall marketplace in 2013 and 2014 and RMB300,000 (approx. US$48,000) for pricing in other promotions in 2013 and 2015. Alibaba marketplaces are designed to bring buyers and sellers together and, while pricing by third party sellers is done independent of Alibaba, we are strongly committed to protecting consumers. Thus we will be reinforcing pricing rules and regulations with our sellers in our daily operations and emphasizing these rules well in advance of our 2015 Singles Day activities.” (Original Source)
Shares of Alibaba closed today at $81.88, down 2.18 or 2.59%. BABA has a 1-year high of $120 and a 1-year low of $80.03. The stock’s 50-day moving average is $83.93 and its 200-day moving average is $95.47.
On the ratings front, Alibaba has been the subject of a number of recent research reports. In a report released yesterday, Brean Capital analyst Fawne Jiang reiterated a Buy rating on BABA, with a price target of $97, which implies an upside of 18% from current levels. Separately, on April 15, Pacific Crest’s Cheng Cheng maintained a Buy rating on the stock and has a price target of $101.
According to TipRanks.com, which ranks over 7,500 financial analysts and bloggers to gauge the performance of their past recommendations, Fawne Jiang and Cheng Cheng have a total average return of 0.5% and 11.2% respectively. Jiang has a success rate of 45.5% and is ranked #2291 out of 3573 analysts, while Cheng has a success rate of 42.3% and is ranked #1078.
The street is mostly Bullish on BABA stock. Out of 37 analysts who cover the stock, 32 suggest a Buy rating and 5 recommend to Hold the stock. The 12-month average price target assigned to the stock is $109.62, which implies an upside of 34% from current levels.