Alibaba Group Holding Ltd (NYSE:BABA) has been making quite a lot of news lately, mostly for all the right reasons. Today comes word that Yahoo is considering making some internal changes, changes that may open up an opportunity for Alibaba. Yahoo’s board of directors is planning to hold several meetings to discuss many aspects of their business, including the large stake that they hold in the Chinese e-commerce company.
Alibaba Group Holding Ltd (NYSE:BABA) could stand to benefit if Yahoo decides to sell their 15% stake in the company back to them. This 15% stake is valued at approximately $32 billion, but Alibaba could potentially buy them back at a discounted price.
The stock is up 1.07% or $0.9 following the news, hitting $84.94 per share. About 2.87 million shares traded hands. BABA has risen 1.88% since April 29, 2015 and is uptrending. It has outperformed the S&P500 by 2.08%.
From a total of 23 analysts covering Alibaba (NYSE:BABA) stock, 21 rate it a “Buy”, 0 a “Sell”, and 2 a “Hold”. This means that 91% of the ratings are positive. The highest target price is $137 while the lowest target price is $80. The mean of all analyst targets is $93.53 which is 10.11% above today’s ($84.94) stock price. Alibaba was the topic of 49 analyst reports since August 12, 2015 according to the firm StockzIntelligence Inc. M Partners maintained shares on October 30 with a “Buy” rating. Axiom Capital maintained shares with a”Buy” rating and a $92 target share price in their report from an October 28. Oppenheimer maintained BABA stock in a recent report from October 28 with a “Outperform” rating. Brean Capital maintained the rating on October 28. Brean Capital has a “Buy” rating and a $98 price target on shares. Finally, Wedbush maintained the stock with a “Neutral” rating in a report they issued on an October 28.
Alibaba Group Holding Limited is a holding company. The company has a market cap of $213.30 billion. The Firm is principally engaged in online and mobile commerce through products, services and technology. It has 32.77 P/E ratio. The Firm provides retail and wholesale marketplaces available through both personal computer and mobile interfaces in the PRC and internationally.