Alibaba Group (BABA) Stock Gains, Oppenheimer Increases Price Target
NEW YORK (TheStreet) -- Shares of Alibaba Group (BABA) - Get Report are up 0.47% to $79.01 in late-morning trading as the company's price target was raised this morning to $110 from $100 with an "outperform" rating at Oppenheimer.
The firm is "more constructive" on the Chinese e-commerce giant after participating in its first ever Investor Day, according to the analyst note.
Alibaba Executive Chairman Jack Ma spoke at the event, saying the company wanted to become the "five pillars of any economy in the world," including eCommerce, logistics, financing, data computing and platform, according to Oppenheimer's notes. He also revealed a "10-year rolling-basis road map" for the "evolution of BABA's ecosystem."
Additionally, the firm believes Wall Street is "massively underestimating" Alibaba's cloud computing arm AliCloud, which they think "will trigger a revaluation of BABA similar to AMZN in 2015."
Separately, TheStreet Ratings objectively rated this stock according to its "risk-adjusted" total return prospect over a 12-month investment horizon. Not based on the news in any given day, the rating may differ from Jim Cramer's view or that of this articles's author. TheStreet Ratings has this to say about the recommendation:
We rate ALIBABA GROUP HLDG as a Hold with a ratings score of C-. The primary factors that have impacted our rating are mixed - some indicating strength, some showing weaknesses, with little evidence to justify the expectation of either a positive or negative performance for this stock relative to most other stocks. The company's strengths can be seen in multiple areas, such as its robust revenue growth, largely solid financial position with reasonable debt levels by most measures and notable return on equity. However, as a counter to these strengths, we also find weaknesses including weak operating cash flow and a generally disappointing performance in the stock itself.
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