Analyst predicts 19% upside for Alibaba stock despite uncertainties, struggles in U.S. market

From Nasdaq: 2024-04-07 09:47:59

Alibaba Group’s stock, listed as (NYSE: BABA), has struggled on the U.S. market lately, underperforming and lacking investor interest in Chinese stocks. Analyst Gary Yu of Morgan Stanley sees a 19% potential rise in the stock over the next year, despite not being bullish on the company.

Alibaba Group announced share buybacks of 524 million shares in the first quarter of 2024, spending $4.8 billion. This significant increase in buybacks compared to previous quarters has led to a $12.5 billion buyback and $2.5 billion dividend in the last 12 months, offering an 8% yield on the stock.

Despite potential price upgrades, uncertainties linger for Alibaba due to China’s ongoing pandemic and government influence, as well as the company’s proposed split into six separate businesses. The future outlook remains unclear, making the stock less appealing for investment now.



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