Alibaba Group (NYSE:BABA) surged 5.7% on Friday after Bank of America raised its price target from $117.00 to $150.00, reinforcing a bullish outlook on the Chinese e-commerce giant. The investment firm maintained a “buy” rating, signaling confidence in Alibaba’s growth potential and hinting at further upside.
Analysts Maintain Bullish Stance on Alibaba
Several other brokerage firms have echoed a positive sentiment on BABA stock. StockNews.com upgraded Alibaba from a “hold” to a “buy,” while Benchmark reiterated its “buy” rating with a $118.00 target price. Mizuho also increased its price target from $92.00 to $113.00, giving the stock an “outperform” rating. Meanwhile, Robert W. Baird raised its target to $125.00, and Barclays set an “overweight” rating with a $130.00 target.
Overall, Alibaba has received 13 “buy” ratings and two “hold” ratings from analysts, according to MarketBeat. The stock’s consensus rating remains a “Moderate Buy,” with an average price target of $131.93.
Alibaba Stock Performance and Key Metrics
BABA opened at $143.67 on Friday, hitting a 52-week high of $145.30. The stock’s 50-day moving average stands at $95.43, while its 200-day moving average is $92.99. Alibaba currently holds a market capitalization of $341.36 billion, with a price-to-earnings (PE) ratio of 20.76 and a price-to-earnings-growth (PEG) ratio of 0.57, signaling potential undervaluation. The stock has a beta of 0.31, indicating relatively low volatility compared to the broader market.
The company has maintained a strong financial position with a debt-to-equity ratio of 0.16, along with a quick ratio and current ratio of 1.37, reflecting its solid liquidity.
Alibaba’s Recent Earnings Report
Alibaba recently reported its quarterly earnings results on February 20, 2025. The company posted an earnings per share (EPS) of $2.77, slightly missing analysts’ consensus estimate of $2.84. However, revenue came in at $38.38 billion, surpassing expectations of $38.19 billion. Despite the minor EPS miss, Alibaba achieved a return on equity of 12.90% and a net margin of 12.29%, reinforcing its strong profitability.
Institutional Investors Show Renewed Interest
Institutional investors have been actively modifying their holdings in Alibaba, signaling confidence in the stock’s future prospects. Some notable moves include:
- Concord Wealth Partners increased its stake by 155% in Q3.
- Decker Retirement Planning Inc. and Sierra Ocean LLC initiated new positions in Q4.
- Assetmark Inc. boosted its holdings by 225% in Q3.
Currently, institutional investors and hedge funds collectively own 13.47% of Alibaba’s stock, suggesting growing institutional confidence.
What’s Next for Alibaba?
With a rising price target from Bank of America and widespread analyst optimism, Alibaba appears to be regaining momentum. The company’s strong financials, institutional backing, and robust market position in China’s e-commerce sector could further support its upward trajectory.
As Alibaba continues to expand and innovate, investors will be closely watching for upcoming earnings reports and key business developments that could drive further stock appreciation.
