Goldman Sachs Removes Alibaba From Conviction List; Still Keeps 'Buy' With 61% Upside

Loading...
Loading...

Goldman Sachs analyst Piyush Mubayi is removing Alibaba Group Holding Ltd BABA from his firm's Conviction List but keeping a Buy rating on the shares with a price target of $215, down from $252, implying a 61.2% upside. 

  • Alibaba has been increasing its investments on both defensive-offensive strategies amid slowing retail spending and budding competition to acquire new users, build multiple traffic sources, and in the shorter term, raise merchant subsidies to retain merchants. 
  • Mubayi expects revenue growth to decelerate to 13%/16% in Q3/Q4. 
  • The analyst also expects the aggressive buybacks to continue and the investment portfolio to be revisited.
  • Mubayi believes the negatives have been priced. 
  • Mubayi is constructive on Alibaba on its extreme valuation.
  • Price Action: BABA shares traded higher by 0.16% at $133.57 in the premarket session on the last check Monday.
date
ticker
name
Price Target
Upside/Downside
Recommendation
Firm
Posted In: Analyst ColorNewsPrice TargetReiterationAnalyst RatingsTechBriefs
Benzinga simplifies the market for smarter investing

Trade confidently with insights and alerts from analyst ratings, free reports and breaking news that affects the stocks you care about.

Join Now: Free!

Loading...