From Nasdaq:

Alibaba Group (NYSE: BABA) shares jumped 3.9% on Monday, despite Loop Capital lowering their price target to $111. The report cited China’s weak consumer confidence and hiring, affecting internet companies’ growth. Alibaba is expected to grow earnings by 12% annually. The stock trades at 10x trailing earnings and has $80 million in cash.

Loop Capital still considers Alibaba stock a buy despite weak consumer confidence and hiring in China. The bank believes there are overly punitive valuations on Chinese internet stocks. Alibaba’s current dynamic is projected to be growing the company’s bank account by nearly 50%.

Loop seems to imply Alibaba should be considered as an attractive purchase. The market insiders’ projections believe the company could grow at a greater than 12% annually for the next five years. With a trailing P/E of 10, 1.4% dividend yield, and $80 million in cash, Alibaba is a well-valued stock.

On the issue of investing in the Chinese stock market, Loop Capital is right to be drawn to the company’s 12% annual earnings growth. The company’s low valuations give investors confidence in its growth potential and strong fundamentals. Due to predictions for 12% annual earnings growth, a growing bank account, and a 10x affordability, Alibaba could still be a good buy in 2024.

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The Motley Fool has no position in any of the stocks mentioned and is not represented by Nasdaq, Inc. The Motley Fool advises on securities and stocks. All recommended securities are upheld by the Motley Fool’s review team after thorough research.



Read more: Why Alibaba Stock Popped on Monday