Alibaba Group (BABA) Earns “Buy” Rating from SunTrust Banks

SunTrust Banks reiterated their buy rating on shares of Alibaba Group (NYSE:BABA) in a research note issued to investors on Wednesday morning, The Fly reports. The brokerage currently has a $200.00 price objective on the specialty retailer’s stock.

“We maintain a Buy/$200 PT going into F4Q19 earnings due out Wed. 5/15 BMO. The latest data out of NBS suggests that the macro environment has been improving, a positive for Chinese consumption, and for BABA in particular. The latest moves by the White House bring greater uncertainty, however, as to the sustainability of these improvements ST; LT we view BABA as a winner considering 1) its dominance of the Chinese ecom. mkt and the insatiable appetite for China’s growing middle class, 2) it’s a 25%+ compounder over the next 5 yrs (our ests), and 3) its portfolio of strategic invests (see SOP). Expectations vs. Consensus. We expect net revenue of 88.5B RMB (+33.7% Y/Y excl. Ele.me) vs. consensus of 91.6B RMB. We expect EBITA of 22.8B RMB vs. consensus of 19.8B RMB.”,” the firm’s analyst commented.

Several other research analysts have also recently issued reports on the stock. Citigroup reissued a buy rating and set a $211.00 price target (up from $208.00) on shares of Alibaba Group in a report on Thursday, January 31st. Oppenheimer increased their price target on shares of Alibaba Group from $185.00 to $195.00 and gave the stock an outperform rating in a report on Thursday, January 31st. Barclays reissued an overweight rating and set a $200.00 price target (up from $195.00) on shares of Alibaba Group in a report on Thursday, January 31st. Zacks Investment Research cut shares of Alibaba Group from a hold rating to a sell rating in a report on Wednesday, January 16th. Finally, KeyCorp set a $200.00 price target on shares of Alibaba Group and gave the stock a buy rating in a report on Wednesday, January 23rd. One research analyst has rated the stock with a hold rating, twenty-seven have assigned a buy rating and one has assigned a strong buy rating to the company’s stock. Alibaba Group currently has a consensus rating of Buy and a consensus price target of $216.67.

Shares of NYSE:BABA opened at $169.57 on Wednesday. Alibaba Group has a one year low of $129.77 and a one year high of $211.70. The company has a debt-to-equity ratio of 0.18, a current ratio of 1.30 and a quick ratio of 1.25. The stock has a market capitalization of $449.66 billion, a PE ratio of 47.23, a price-to-earnings-growth ratio of 1.45 and a beta of 2.27.

Alibaba Group (NYSE:BABA) last announced its earnings results on Wednesday, May 15th. The specialty retailer reported $8.57 EPS for the quarter, beating analysts’ consensus estimates of $0.75 by $7.82. Alibaba Group had a net margin of 23.17% and a return on equity of 12.72%. The business had revenue of $93.50 billion during the quarter, compared to analysts’ expectations of $91.68 billion. During the same period in the prior year, the company earned $5.73 earnings per share. The business’s revenue was up 51.0% compared to the same quarter last year. As a group, sell-side analysts predict that Alibaba Group will post 4.88 EPS for the current year.

Institutional investors and hedge funds have recently modified their holdings of the business. Vanguard Group Inc grew its position in shares of Alibaba Group by 2.3% in the third quarter. Vanguard Group Inc now owns 37,571,661 shares of the specialty retailer’s stock valued at $6,190,307,000 after purchasing an additional 849,659 shares during the last quarter. Gofen & Glossberg LLC IL grew its position in shares of Alibaba Group by 4.1% in the fourth quarter. Gofen & Glossberg LLC IL now owns 2,158 shares of the specialty retailer’s stock valued at $296,000 after purchasing an additional 85 shares during the last quarter. Ipswich Investment Management Co. Inc. acquired a new stake in shares of Alibaba Group in the fourth quarter valued at approximately $38,000. Boothe Investment Group Inc. acquired a new stake in shares of Alibaba Group in the fourth quarter valued at approximately $940,000. Finally, Navellier & Associates Inc grew its position in shares of Alibaba Group by 44.8% in the fourth quarter. Navellier & Associates Inc now owns 789 shares of the specialty retailer’s stock valued at $108,000 after purchasing an additional 244 shares during the last quarter. Institutional investors own 40.49% of the company’s stock.

Alibaba Group Company Profile

Alibaba Group Holding Limited, through its subsidiaries, operates as an online and mobile commerce company in the People's Republic of China and internationally. The company operates in four segments: Core Commerce, Cloud Computing, Digital Media and Entertainment, and Innovation Initiatives and Others.

Featured Article: The benefits and drawbacks of dollar cost averaging

The Fly

Analyst Recommendations for Alibaba Group (NYSE:BABA)

Receive News & Ratings for Alibaba Group Daily - Enter your email address below to receive a concise daily summary of the latest news and analysts' ratings for Alibaba Group and related companies with MarketBeat.com's FREE daily email newsletter.