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Alibaba Group Holding Limited (BABA) has an average brokerage recommendation (ABR) of 1.35, indicating a strong buy to buy sentiment, based on 17 recommendations from brokerage firms. Of these, 14 recommendations (82.4%) are rated as Strong Buy.
Despite this favorable ABR, analysts caution against making investment decisions solely based on it, as studies indicate that brokerage recommendations often exhibit a positive bias. The current consensus earnings estimate for Alibaba remains unchanged at $8.20, leading to a Zacks Rank #3 (Hold) for the stock.
Investor sentiment regarding Alibaba may require caution, given the divergence between the ABR and the Zacks Rank, which is driven by earnings estimate revisions and is generally considered a more reliable indicator of stock performance.
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