Erste Group Bank Lifts Earnings Estimates for Alibaba Group

Alibaba Group Holding Limited (NYSE:BABA) – Analysts at Erste Group Bank upped their FY2028 earnings estimates for Alibaba Group in a research report issued on Thursday, October 8th. Erste Group Bank analyst S. Lingnau now anticipates that the specialty retailer will post earnings of $8.42 per share for the year, up from their prior estimate of $8.41. The consensus estimate for Alibaba Group’s current full-year earnings is $5.89 per share.

BABA has been the topic of a number of other research reports. Benchmark reiterated a “buy” rating on shares of Alibaba Group in a report on Thursday, August 20th. Jefferies Financial Group restated a “buy” rating and set a $192.00 target price on shares of Alibaba Group in a research note on Thursday. HSBC set a $170.00 target price on Alibaba Group in a research note on Thursday, July 9th. Piper Sandler lowered Alibaba Group to a “hold” rating in a research report on Thursday. Finally, Robert W. Baird cut their price target on Alibaba Group from $164.00 to $160.00 and set an “outperform” rating on the stock in a research note on Friday, August 21st. Two research analysts have rated the stock with a Strong Buy rating, thirteen have given a Buy rating and six have issued a Hold rating to the company. According to data from MarketBeat, the company has a consensus rating of “Moderate Buy” and an average price target of $182.89.

Alibaba Group Stock Performance

Alibaba Group stock opened at $110.64 on Tuesday. Alibaba Group has a 12-month low of $91.99 and a 12-month high of $182.50. The company has a market capitalization of $275.24 billion, a price-to-earnings ratio of 26.79, a price-to-earnings-growth ratio of 1.47 and a beta of 0.47. The company has a debt-to-equity ratio of 0.21, a current ratio of 1.36 and a quick ratio of 1.36. The firm’s fifty day moving average price is $115.76 and its 200 day moving average price is $119.44.

Alibaba Group (NYSE:BABA) last announced its earnings results on Friday, August 14th. The specialty retailer reported $1.26 earnings per share for the quarter, missing the consensus estimate of $1.94 by ($0.68). The firm had revenue of $39.64 billion during the quarter, compared to analysts’ expectations of $39.52 billion. Alibaba Group had a net margin of 7.00% and a return on equity of 4.79%. Alibaba Group’s revenue for the quarter was up 8.6% compared to the same quarter last year. During the same quarter last year, the company posted $14.75 earnings per share.

Hedge Funds Weigh In On Alibaba Group

Large investors have recently modified their holdings of the stock. Accredited Investors Inc. grew its stake in shares of Alibaba Group by 2.9% in the first quarter. Accredited Investors Inc. now owns 2,858 shares of the specialty retailer’s stock worth $359,000 after purchasing an additional 80 shares in the last quarter. Mainstream Capital Management LLC increased its holdings in shares of Alibaba Group by 1.1% during the first quarter. Mainstream Capital Management LLC now owns 8,597 shares of the specialty retailer’s stock valued at $1,079,000 after purchasing an additional 93 shares during the period. Blue Trust Inc. raised its stake in shares of Alibaba Group by 0.6% during the first quarter. Blue Trust Inc. now owns 16,457 shares of the specialty retailer’s stock valued at $2,065,000 after purchasing an additional 94 shares in the last quarter. Banque Transatlantique SA raised its stake in shares of Alibaba Group by 0.5% during the fourth quarter. Banque Transatlantique SA now owns 20,615 shares of the specialty retailer’s stock valued at $3,022,000 after purchasing an additional 95 shares in the last quarter. Finally, Hoey Investments Inc. raised its stake in shares of Alibaba Group by 95.2% during the first quarter. Hoey Investments Inc. now owns 205 shares of the specialty retailer’s stock valued at $26,000 after purchasing an additional 100 shares in the last quarter. Institutional investors own 13.47% of the company’s stock.

Insiders Place Their Bets

In related news, CFO Hong Xu sold 103,046 shares of the company’s stock in a transaction on Friday, September 25th. The shares were sold at an average price of $13.68, for a total value of $1,409,669.28. Following the sale, the chief financial officer directly owned 406,450 shares of the company’s stock, valued at $5,560,236. This represents a 20.23% decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the SEC, which is accessible through this link. The sale was made to cover tax withholding obligations related to the vesting of equity awards. Also, General Counsel Siying Yu sold 6,764 shares of the stock in a transaction on Friday, September 25th. The shares were sold at an average price of $13.58, for a total transaction of $91,855.12. Following the transaction, the general counsel owned 613,965 shares in the company, valued at $8,337,644.70. This trade represents a 1.09% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. The sale was made to cover tax withholding obligations related to the vesting of equity awards. In the last quarter, insiders have sold 999,971 shares of company stock valued at $13,563,304. 12.50% of the stock is owned by insiders.

More Alibaba Group News

Here are the key news stories impacting Alibaba Group this week:

• Positive Sentiment: Alibaba unveiled a new generation of approximately $450 AI glasses, expanding its consumer-electronics lineup and providing a potential new way to monetize its artificial-intelligence capabilities. The launch reinforces management’s strategy of integrating AI across hardware, cloud services and e-commerce. Alibaba Unveils $450 AI Glasses in Expanding Push Into Gadgets
• Positive Sentiment: Jefferies maintained a Buy rating and named Alibaba its top China internet-sector pick, citing solid execution across business segments and accelerating AI-cloud growth. The firm sees substantial upside from current levels, while JPMorgan retained an Overweight rating despite reducing its price target to $200. Alibaba Has Lost 41% in a Year: Jefferies Sees 79% Upside
• Positive Sentiment: Alibaba is expanding AI-cloud capacity in Europe, including new AI-focused regions and planned Spanish data-center projects. Partnerships involving Sands China’s robotic guides and the Brooklyn Nets’ sports-fan technology also illustrate potential real-world applications for Alibaba’s cloud and AI platforms. Alibaba Is Building New AI Cloud Regions In Europe
• Neutral Sentiment: Erste Group slightly raised its FY2028 EPS forecast to $8.42 from $8.41. The increase is supportive but modest compared with the broader consensus estimate of $5.89 for the current fiscal year.
• Negative Sentiment: Alibaba’s aggressive AI-capital-spending program is creating concerns about near-term cash outflows, profitability and whether management can achieve its targeted three-year payback period. Reports also highlighted RMB44.7 billion of free-cash-flow outflow in the June quarter, increasing scrutiny of investment discipline.
• Negative Sentiment: JPMorgan’s price-target reduction, although still accompanied by an Overweight rating and substantial implied upside, signals that execution or valuation risks remain. Alibaba also previously missed quarterly EPS expectations, adding to investor caution.

Alibaba Group Company Profile

Alibaba Group Holding Limited is a technology and commerce company founded in 1999 and headquartered in Hangzhou, China. It operates a broad digital ecosystem connecting consumers, merchants, brands and businesses through online marketplaces and related services.

The company’s China commerce businesses include Taobao and Tmall, while its international commerce operations include Alibaba.com, AliExpress, Lazada and Trendyol. Alibaba also provides logistics services through Cainiao, consumer services through platforms such as Ele.me and Freshippo, and digital media and entertainment offerings.

Alibaba Cloud provides cloud computing, data management, artificial intelligence and other technology services to businesses and organizations.