Axiom Securities Lowers Alibaba Group Holding Price Target to $85.00 (BABA)

Alibaba Group Holding (NYSE:BABA) had its price target decreased by Evercore ISI from $95.00 to $86.00 in a research note issued to investors on Monday morning, Market reports. We believe there are better options than absorbing the full tax liability, about $9Bn at current prices.


Alibaba Group Holding (NYSE:BABA) opened at 67.23 on Wednesday.

Analysts were once adamant in their predictions that the company was solid and its stock was on a sky-high trajectory.

Effective August 01, 2014, Alibaba Investment Ltd, a unit of Alibaba Group Holding Ltd, acquired a 10.193% interest n Singapore Post Ltd. Morgan Stanley reissued an “overweight” rating on shares of Alibaba Group Holding in a research note on Saturday, May 23rd. The company has a market cap of $156,218 million and there are 2,495,499,000 shares in outstanding.

“They are trying to do too many things at once”, said John Ettinger, a co-portfolio manager of the $5.6 billion Federated Kaufmann fund, which has owned Alibaba shares since the fanfare of the initial public offering. The stock has a 50-day moving average of $70.84 and a 200 day moving average of $81.19. The company reported $0.59 earnings per share (EPS) for the quarter, beating the consensus estimate of $0.58 by $0.01.

One tell-tale sign about Alibaba’s current plight was its recent decision to embark on a massive US billion share buy-back programme over a two-year period, just within 12 months after its IPO, to ease investors’ concerns. RBC Capital reiterated a buy rating and set a $80.00 price objective (down from $91.00) on shares of Alibaba Group Holding in a report on Tuesday. Sanford C. Bernstein initiated coverage on shares of Alibaba Group Holding in a report on Thursday, May 21st. The company has an average rating of “Buy” and an average price target of $96.77. Axiom Securities lowered their target price on shares of Alibaba Group Holding from $90.00 to $85.00 and set a buy rating for the company in a research note on Monday. Seven analysts have rated the stock with a hold rating, thirty-six have issued a buy rating and one has given a strong buy rating to the stock.


Alibaba Group’s IPO which began with a big bang did not last for long. The Company supplies wholesale and retail markets available through mobile interfaces and both personal computer in the PRC and internationally. As a platform, the Company provides the fundamental technology infrastructure and marketing reach to help businesses leverage the power of the Internet to establish an online presence and conduct commerce with consumers and businesses.

Alibaba falls below IPO price in New York Stock Exchange                 Author LBOPosted