- Alibaba's stock has surged 36% this quarter due to a robust share buyback strategy and impressive earnings growth.
- Analysts are optimistic, with a potential upside of nearly 50% based on consensus price targets.
- GuruFocus estimates suggest slight upside in stock value based on historical and future business performance.
Alibaba Group Holding (NYSE: BABA) has made significant strides this quarter, witnessing an impressive 36% increase in its stock price. This upward trajectory stems from a strategic share repurchase program alongside robust earnings growth. By buying back 51 million shares, which constitutes 2.2% of its outstanding shares, Alibaba has bolstered investor confidence. Despite its recent rise, the stock is still trading below the consensus price target, indicating possible further growth.
Analyst Insights and Price Projections
The stock is drawing attention with a one-year price target averaging $158.59, as projected by 38 analysts. Their forecasts range from a high of $191.64 to a low of $93.53. These projections suggest a promising upside of 48.56% from the current trading price of $106.75. Investors can explore more in-depth estimates on the Alibaba Group Holding Ltd (BABA, Financial) Forecast page.
The consensus from 43 brokerage firms bestows an "Outperform" rating on Alibaba, reflected in an average brokerage recommendation of 1.7. This rating scale spans from 1, representing a Strong Buy, to 5, indicating a Sell.
GuruFocus Value Estimates
GuruFocus provides its GF Value estimation for Alibaba, asserting a projected fair value of $107.59 for the coming year. This estimate suggests a slight upside of 0.79% from the current price of $106.75. The GF Value reflects an analysis based on Alibaba's historical trading multiples, past business growth, and anticipated future performance. For additional details, investors can visit the Alibaba Group Holding Ltd (BABA, Financial) Summary page.
