Stock Update (NYSE:BABA): Joint Statement From Alibaba Group’s Costco Wholesale Corporation and Tmall Global Regarding False Claims
Costco Wholesale Corporation and Alibaba Group Holding Ltd (NYSE:BABA) Tmall Global platform issued the following joint statement regarding false claims of distribution channels of Costco products sold in China:
“Costco’s Tmall Global store is the only online Costco flagship store in China. Customers are welcome to shop for authentic Costco products through Tmall Global. Costco reserves the right to take legal action against any unauthorized sites on other platforms.”
“Our partnership with Costco has provided Chinese consumers with direct access to authentic Costco products sold through its flagship store on Tmall Global,” said Wu Qian, head of Tmall Global. “Costco is a highly-regarded international brand and we are honored to be its only official online channel in China. By creating a premium shopping experience for consumers, Tmall Global is committed to helping international brands grow their footprint in China and satisfy Chinese consumers’ growing demand for authentic and quality goods.
Costco Wholesale Corporation is America’s leading membership-only warehouse club that provides a wide range of quality, brand name merchandise. On October 14th, 2014, Costco announced it entered China for the first time through the opening of an online flagship store on Alibaba Group’s Tmall Global platform, an extension of Tmall.com, China’s largest third-party platform for brands and retailers. (Original Source)
Shares of Alibaba Group closed yesterday at $85.39. BABA has a 1-year high of $120 and a 1-year low of $80.03. The stock’s 50-day moving average is $84.16 and it’s 200-day moving average is $95.71.
On the ratings front, Alibaba has been the subject of a number of recent research reports. In a report issued on April 1, Oppenheimer analyst Timothy Horan reiterated a Buy rating on BABA, with a price target of $105, which implies an upside of 23.0% from current levels. Separately, on the same day, Daiwa’s John Choi reiterated a Buy rating on the stock and has a price target of $105.
According to TipRanks.com, which ranks over 7,500 financial analysts and bloggers to gauge the performance of their past recommendations, Timothy Horan and John Choi have a total average return of 2.1% and 8.8% respectively. Horan has a success rate of 67.4% and is ranked #1264 out of 3571 analysts, while Choi has a success rate of 66.7% and is ranked #2269.
The street is mostly Bullish on BABA stock. Out of 21 analysts who cover the stock, 19 suggest a Buy rating and 2 recommend to Hold the stock. The 12-month average price target assigned to the stock is $107.74, which represents a potential upside of 26.2% from where the stock is currently trading.