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Analyst Lowers Target for Alibaba Group Stock

The Chinese e-commerce stock is struggling to hold support at a key trendline

Jul 6, 2018 at 9:16 AM
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SunTrust Robinson this morning dropped its price target on Alibaba Group Holding Ltd (NYSE:BABA) to $215 from $235, with the downwardly revised forecast implying expected upside of just over 15% to Thursday night's close at $186.88. To put that in perspective, BABA stock has gained 31.2% over the last 52 weeks.

Despite today's price-target cut, analysts remain overwhelmingly bullish on the Chinese e-commerce giant. BABA has garnered no fewer than 42 "buy" or better ratings from analysts, compared to just two "holds" and zero "sells." Plus, the stock sports an average 12-month price target of $238.66 -- up from $225.80 three months ago, and well north of the equity's all-time high of $211.69, set on June 5.

Elsewhere, there are quite a few bears betting against Alibaba stock. Short interest accounts for 10.5% of the security's float, and represents 6.8 times BABA's average daily trading volume.

On the charts, BABA is struggling to hold support at its 200-day moving average. The shares have traded below this trendline in each of the past six sessions, and notched two closes beneath it over this time frame. However, the stock managed to end Thursday's trading more than 1 point above its 200-day. Ahead of the bell this morning, BABA has wobbled between fractional gains and losses as traders weigh the implementation of tariffs on $34 billion in Chinese goods.

 
 

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