Erste Group Bank Cuts Earnings Estimates for Alibaba Group

Key Points

• Erste Group trimmed its FY2026 EPS estimate for Alibaba to $4.13 (from $4.16) and kept a "Hold" rating, while projecting FY2027 EPS of $6.31 versus a current consensus FY estimate of $4.33.
• Analyst opinions remain mixed but tilted positive: MarketBeat shows a consensus of Moderate Buy with an average price target of $188.75 and analyst counts of 2 Strong Buy, 16 Buy, 4 Hold and 1 Sell.
• Institutional investors have been increasing exposure—Capital World, Northwestern Mutual and Fisher added shares and Norges Bank opened a new ~$594M position—as BABA trades near $141 with a market cap around $338B.

Alibaba Group Holding Limited (NYSE:BABA - Free Report) - Analysts at Erste Group Bank decreased their FY2026 earnings per share (EPS) estimates for shares of Alibaba Group in a research report issued on Tuesday, May 5th. Erste Group Bank analyst H. Engel now anticipates that the specialty retailer will post earnings per share of $4.13 for the year, down from their prior estimate of $4.16. Erste Group Bank currently has a "Hold" rating on the stock. The consensus estimate for Alibaba Group's current full-year earnings is $4.33 per share. Erste Group Bank also issued estimates for Alibaba Group's FY2027 earnings at $6.31 EPS.

A number of other brokerages have also weighed in on BABA. Morgan Stanley cut their price objective on Alibaba Group from $200.00 to $180.00 and set an "overweight" rating on the stock in a research report on Thursday, January 8th. Susquehanna cut their price objective on Alibaba Group from $190.00 to $170.00 and set a "positive" rating on the stock in a research report on Thursday, March 26th. Arete Research upgraded Alibaba Group from a "neutral" rating to a "buy" rating and set a $190.00 price objective on the stock in a research report on Wednesday, January 21st. Zacks Research lowered Alibaba Group from a "hold" rating to a "strong sell" rating in a research report on Wednesday, April 22nd. Finally, Nomura lifted their price target on Alibaba Group from $193.00 to $237.00 and gave the company a "buy" rating in a research report on Monday, January 26th. Two investment analysts have rated the stock with a Strong Buy rating, sixteen have issued a Buy rating, four have given a Hold rating and one has given a Sell rating to the company. Based on data from MarketBeat.com, the company currently has a consensus rating of "Moderate Buy" and an average price target of $188.75.

Alibaba Group Price Performance

Shares of BABA stock opened at $141.02 on Friday. The firm has a market cap of $338.30 billion, a P/E ratio of 26.61, a P/E/G ratio of 2.57 and a beta of 0.50. Alibaba Group has a fifty-two week low of $103.71 and a fifty-two week high of $192.67. The business's 50 day moving average price is $132.13 and its 200-day moving average price is $150.58. The company has a debt-to-equity ratio of 0.22, a quick ratio of 1.33 and a current ratio of 1.33.

Alibaba Group (NYSE:BABA - Get Free Report) last issued its quarterly earnings data on Saturday, February 14th. The specialty retailer reported $0.13 earnings per share for the quarter. The firm had revenue of $40.71 billion for the quarter. Alibaba Group had a return on equity of 7.43% and a net margin of 9.12%.

Institutional Inflows and Outflows

A number of large investors have recently added to or reduced their stakes in the stock. Capital World Investors raised its stake in Alibaba Group by 7.7% during the fourth quarter. Capital World Investors now owns 6,505,165 shares of the specialty retailer's stock valued at $953,527,000 after buying an additional 466,847 shares during the last quarter. Northwestern Mutual Wealth Management Co. raised its stake in Alibaba Group by 7,680.3% during the fourth quarter. Northwestern Mutual Wealth Management Co. now owns 6,014,147 shares of the specialty retailer's stock valued at $881,554,000 after buying an additional 5,936,847 shares during the last quarter. Fisher Asset Management LLC raised its stake in Alibaba Group by 0.8% during the fourth quarter. Fisher Asset Management LLC now owns 5,335,894 shares of the specialty retailer's stock valued at $782,135,000 after buying an additional 42,297 shares during the last quarter. Norges Bank purchased a new position in Alibaba Group during the fourth quarter valued at $594,477,000. Finally, American Century Companies Inc. raised its stake in shares of Alibaba Group by 17.7% in the third quarter. American Century Companies Inc. now owns 2,987,539 shares of the specialty retailer's stock worth $533,964,000 after purchasing an additional 448,484 shares during the last quarter. Hedge funds and other institutional investors own 13.47% of the company's stock.

About Alibaba Group

Alibaba Group Holding Limited is a Chinese multinational conglomerate founded in 1999 in Hangzhou, China, by Jack Ma and a group of co‑founders. The company built its business around internet-based commerce and related services and has grown into one of the largest e-commerce and technology companies in the world. Alibaba completed a high‑profile initial public offering on the New York Stock Exchange in 2014.

The company operates a portfolio of online marketplaces and platforms serving different customer segments: Alibaba.com for global and domestic B2B trade, Taobao for consumer-to-consumer shopping, and Tmall for brand and retailer storefronts targeted at Chinese consumers.

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