Key Takeaways:
- Chinese e-commerce platforms, including Alibaba, will halt refund policies without product returns by July 2025.
- Analysts set a positive forecast for Alibaba, with an average price target indicating significant upside.
- Despite favorable brokerage recommendations, GuruFocus estimates a potential downside in Alibaba's valuation.
Chinese e-commerce giant Alibaba (BABA) and other platforms such as JD.com and PDD Holdings are set to discontinue their policy of offering refunds without requiring product returns by July 2025. This strategic move, mandated by Chinese authorities, is designed to bolster the financial stability of merchants facing tough economic times. This policy shift follows a period of public protests and heightened regulatory scrutiny.
Wall Street Analysts' Projections for Alibaba
According to projections from 38 Wall Street analysts, the average target price for Alibaba Group Holding Ltd (BABA, Financial) is set at $159.07. The range of estimates includes a high of $192.26 and a low of $93.84, with the average target suggesting a potential upside of 37.27% from the current trading price of $115.88. For an in-depth view of these estimates, visit the Alibaba Group Holding Ltd (BABA) Forecast page.
The consensus recommendation from 43 brokerage firms positions Alibaba Group Holding Ltd (BABA, Financial) at an average recommendation of 1.7, categorizing it as "Outperform." This rating emerges from a scale where 1 stands for Strong Buy, and 5 signifies Sell, reflecting overall investor optimism.
Assessing Alibaba's Value with GuruFocus Metrics
Despite the optimistic outlook from analysts, GuruFocus provides an estimated GF Value for Alibaba Group Holding Ltd (BABA, Financial) at $107.56 in one year, suggesting a downside of 7.18% from its current price of $115.88. The GF Value is GuruFocus' measure of a stock's fair trading value, derived from historical trading multiples and future business performance forecasts. For more comprehensive insights, explore the Alibaba Group Holding Ltd (BABA) Summary page.
