Alibaba Group Holding Limited (NYSE:BABA): Brokerage Calls on BABA Stock Conflict

Stock analysts at DZ Bank, assumed coverage of shares of Alibaba Group Holding Limited (NYSE:BABA) with Buy recommendation, according to their opinion released on January 22. Analysts at HSBC Securities are sticking to their Buy recommendation for the stock. However, on October 04, they lifted target price to $233 from the prior target set at $230. Analysts at HSBC Securities, made their first call for this company shares with a Buy rating, according to a research note that dated back to October 04.

The stock is lingering around the initial support level of $220.79. After this, the following support is at the zone of $218.69. Up until the time the BABA stock hit levels beyond the current one, bulls should have no alarm. In terms of its momentum, the stock’s RSI hit 55.72 on the daily chart, and this may be a cause for concern. In case the price goes below $218.69 level on closing basis, there may be more profit booking with the stock growing weaker. Still, getting to the $224.68 level may cause a pull-back move approaching $226.47 mark.

In the recent trading session, Alibaba Group Holding Limited (NYSE:BABA) shares lost -1.17% or -2.61 points to reach at $220.27 with a thin trading volume of 10.254 million shares. It opened the trading session at $221.35, the shares rose to $224.38 and dropped to $220.49, the range by which the price of stock traded the whole session. The company now has a market cap of $604 billion and currently has 2.71 billion outstanding shares. Alibaba Group Holding Limited (BABA) stock has accumulated 2.71 percent of market value in 21 trading days.

BABA stock’s trailing 3-year beta is 2.2, meaning there will be a greater rate of return, although posing a higher risk. The part of a firm’s profit given to each outstanding share of regular stock was $8.37 share in the trailing 52 weeks. The stock’s value surged 5.08 percent year to date (YTD) compared to a rise of 33.7 percent in 52 week’s period. The firm’s shares are still trading -4.7 percent below its 1-year high of $231.14 and 48.88 percent up from 52-week low of $147.95. The average consensus ranking on the company is 1.6, on a ranging where 5 is equal to a consensus sell rating. In other words, the mean analyst recommendations are ranking this stock as a buy.

Alibaba Group Holding Limited (BABA) shares are trading at a P/E ratio of 24.5 times earnings posted in the trailing 12 months. The industry BABA deals with has an average P/E of 28.85. Its P/B ratio is standing at 7.59X compared to the 6.31 industry average. It is additionally sporting a 6.69 on the Price-to-Sales ratio, compared to the industry’s P/S average of 1.38. Alibaba Group Holding Limited has a 45.6% gross profit margin, with its operating margin around 18.1%. Alongside this, the company’s net profit margin currently stands at 34.3%.

Past records have indicated that shares in Alibaba Group Holding Limited rose on 12 different earnings reaction days and we have yet to see whether this trend will play out and remain in place when the company reports upcoming earnings.