- The shares of Alibaba Group Holding Ltd (NYSE: BABA) have received a $200 price target from Citi. These are the details.
The shares of Alibaba Group Holding Ltd (NYSE: BABA) have received a $200 price target from Citi. Citi analyst Alicia Yap adjusted the rating following Alibaba’s stock buyback announcement.
Alibaba had increased its share repurchase program to $25 billion. And this is the company’s largest-ever stock buyback program. Yap is expecting Alibaba to buy back $15.8 billion of its shares through March 2024
“We view positively the decision to up-size the repurchase program, which likely suggests that management sees the current share price as undervalued and attractive. This would be is in-line with our recent comment that following recent weeks of volatility, BABA shares are trading at a P/E that is 2 standard deviations below the historical average, despite Ali over the past few years evolving into multiple business segments that are not well-reflected in its consolidated earnings given some are loss-making,” wrote Yap in a research note.
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