
Buy Alibaba Ahead of Earnings? This Analyst Thinks So
Shares of Alibaba Group Holding Ltd (BABA) - Get Report have been on fire this year, soaring 79.5% so far in 2017.
With earnings scheduled for Thursday before the open, though, Wednesday is the last regular-trading-hours session that investors can make a move on BABA stock before it reports. Should they buy, sell or hold?
According to the analysts at SunTrust, buying doesn't seem like such a bad idea. Youssef Squali initiated coverage of Alibaba with a buy rating and a $175 price target. Squali says the company has a "unique advantage" thanks to the its brand, scale and model.
His price target implies upside of about 9.3%. While those gains may not be overwhelmingly impressive, consider how hot the stock has been in addition to its potential for further gains. It helps that hedge funds have been loading up on BABA stock as well.
The fact that it's operating in the booming Chinese e-commerce market is another massive advantage and one that many investors see continuing for the long term. Squali also pegs the growing middle class of China as another catalyst for long-term growth, with the analyst adding that Alibaba has significant growth opportunities going forward.
Shares are up $5, or 3.2%, only minutes into Wednesday trading, pushing shares to $159.57 -- just shy of the stock's 52-week high of $160.39.
- Do You Know What Alibaba Actually Does?
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This article is commentary by an independent contributor. At the time of publication, the author had no positions in the stocks mentioned.










