Alibaba Shares Soar Past Analyst Price Target: What’s Next?
Recently, Alibaba Group Holding Ltd (Symbol: BABA) saw its shares rise above the average 12-month target price set by analysts, reaching $124.73 per share. The average target price stands at $120.47. This situation presents analysts with a choice: they can either downgrade their valuation or adjust their target higher. Their decision often hinges on business developments that contribute to the stock’s performance. If the news around Alibaba stays positive, a higher target may be warranted.
The average target price for Alibaba is derived from 19 analysts under Zacks’ coverage. However, this average masks a wide range of opinions. Some analysts set targets well below the average; for instance, one has a target of $85.00. Conversely, another foresees the stock reaching $150.00. The standard deviation among these estimates is $15.812, indicating significant variability in analyst predictions.
The worth of analyzing the average price target lies in reflecting the collective insight of various analysts instead of relying on a lone opinion. With BABA now trading above the average target price of $120.47, it signals to investors to reassess their perspectives on the stock. The key question for them is whether this price point marks a temporary pause en route to a greater target or if the valuation has stretched too thin, prompting a reevaluation of their positions.
| Recent BABA Analyst Ratings Breakdown | ||||
|---|---|---|---|---|
| » | Current | 1 Month Ago | 2 Month Ago | 3 Month Ago |
| Strong buy ratings: | 17 | 17 | 17 | 17 |
| Buy ratings: | 0 | 0 | 0 | 0 |
| Hold ratings: | 2 | 2 | 2 | 2 |
| Sell ratings: | 0 | 0 | 0 | 0 |
| Strong sell ratings: | 0 | 0 | 0 | 0 |
| Average rating: | 1.21 | 1.21 | 1.21 | 1.21 |
The average rating from the table above follows a scale of 1 to 5, where 1 signifies a Strong Buy and 5 indicates a Strong Sell. Data was sourced from Zacks Investment Research via Quandl.com. Access the latest Zacks research report on BABA for free.
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The views and opinions expressed herein are those of the author and do not necessarily reflect the views of Nasdaq, Inc.
