Will Alibaba's Stock Hit Triple Digits Once Again?

Shares of Alibaba Group Holding Ltd BABA peaked at $120.00 last November and have been trading below the $100-mark for most of 2015. As investors anxiously await for its first-quarter results on Wednesday, the question remains when (or if) shares will once again trade in the triple-digits.

Two analysts agree on the potential upside in the stock ahead of the earnings print.

Cantor Fitzgerald: Macro Concerns Remain, $110 Price Target Reaffirmed

Youssef Squali of Cantor Fitzgerald commented in a note that Alibaba is expected to report "strong" first-quarter results due to "solid" growth in its TaoBao and Tmall segments. The analyst is expecting the company to report $109.34 billion in gross merchandise volume (GMV) in the quarter, marking a 35.4 percent increase from a year ago.

Squali also suggested that Alibaba's international commerce should show "healthy" growth at $298 million, up 26 percent year-over-year.

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More importantly, Squali suggested investors pay attention to the following key topics during the post-earnings conference call: 1) how demand is faring given the volatility seen in equity markets and slowing GDP, 2) progress on Tmall Global, 3) e-commerce opportunity outside of China, 4) mobile monetization initiatives, and 5) potential impact from a new rule limiting online payments by individuals to $805 per day.

Shares remain Buy rated with an unchanged $110 price target which is based on a five-year discounted cash flow model.

Summit Research: Investments & Margins In Focus, $97 Price Target Reaffirmed

Henry Guo of Summit Research commented in a note that market sentiment heading into Alibaba's prints "is on the negative side" due to concerns over China's economy, competition, margin pressures due to "aggressive" investments and mobilization challenges.

Guo stated that management's commentary on operating margin will be a key focus on the post-earnings conference call. The current Street estimates are calling for around a five point year-over-year margin contraction to a range of 44 to 45 percent.

Looking forward, the analyst stated that Alibaba's heavy investments in its businesses are likely to continue and keep up with its peers.

Shares remain Buy rated with an unchanged $97 price target which is based on a 35x multiple to the analyst's 2016 non-GAAP EPS estimate of $2.76. Guo noted that the 35x multiple already represents a "warranted" premium to other leading eCommerce companies in the world.

The analyst's $97 price target is his only rating and has remained unchanged since April 20.