- The shares of Alibaba Group Holding Ltd (NYSE: BABA) have received a $215 price target from Goldman Sachs. These are the details.
The shares of Alibaba Group Holding Ltd (NYSE: BABA) have received a $215 price target from Goldman Sachs. And Goldman Sachs analyst Piyush Mubayi removed Alibaba from the firm’s “Conviction List” while keeping a “Buy” rating and reducing the price target from $252.
Mubayi noted that at a time when retail spending is slowing down and the rival intensity is leveling up, Alibaba has been increasing its investments on both defensive and offensive strategies to acquire new users, build multiple traffic sources, and raise merchant subsidies to retain them in the shorter-term.
Plus Mubayi expects revenue growth to decelerate to 13%/16% in the third and fourth quarters. And Mubayi also expects the aggressive buybacks to continue, the investment portfolio to be revisited, and the negatives to be priced. Now Mubayi is constructive on Alibaba on its extreme valuation.
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