Erste Group Bank Expects Reduced Earnings for Alibaba Group

Key Points

• Erste Group Bank cut its FY2027 EPS forecast for Alibaba to $6.15 from $6.31, while keeping a Hold rating on the stock. That estimate is still below the broader consensus of $6.67 per share.
• Other analysts remained more constructive, with firms like JPMorgan, Mizuho, and Barclays raising price targets and maintaining bullish ratings. Overall, MarketBeat data shows Alibaba still has a Moderate Buy consensus and a $188.76 average price target.
• Alibaba shares were trading around $132.53, with the company showing a mixed financial profile: modest recent quarterly earnings, but strong liquidity and low leverage. The company also announced a $1.05 annual dividend, though the reported yield appears unusually high.

Alibaba Group Holding Limited (NYSE:BABA - Free Report) - Analysts at Erste Group Bank lowered their FY2027 earnings per share (EPS) estimates for shares of Alibaba Group in a research report issued to clients and investors on Tuesday, May 12th. Erste Group Bank analyst H. Engel now expects that the specialty retailer will post earnings per share of $6.15 for the year, down from their previous forecast of $6.31. Erste Group Bank currently has a "Hold" rating on the stock. The consensus estimate for Alibaba Group's current full-year earnings is $6.67 per share.

Other equities research analysts also recently issued research reports about the company. JPMorgan Chase & Co. raised their price objective on Alibaba Group from $200.00 to $205.00 and gave the company an "overweight" rating in a report on Thursday. Mizuho raised their price objective on Alibaba Group from $190.00 to $195.00 and gave the company an "outperform" rating in a report on Thursday. Weiss Ratings downgraded Alibaba Group from a "buy (b-)" rating to a "hold (c+)" rating in a report on Friday, February 27th. Barclays lifted their target price on Alibaba Group from $186.00 to $195.00 and gave the stock an "overweight" rating in a report on Thursday. Finally, DZ Bank downgraded Alibaba Group from a "buy" rating to a "hold" rating and set a $135.00 target price on the stock. in a report on Friday, March 20th. Two equities research analysts have rated the stock with a Strong Buy rating, sixteen have given a Buy rating, four have issued a Hold rating and one has given a Sell rating to the stock. Based on data from MarketBeat.com, the stock currently has a consensus rating of "Moderate Buy" and a consensus price target of $188.76.

Alibaba Group Trading Down 0.0%

NYSE BABA opened at $132.53 on Monday. The company has a quick ratio of 1.33, a current ratio of 1.28 and a debt-to-equity ratio of 0.21. Alibaba Group has a twelve month low of $103.71 and a twelve month high of $192.67. The company has a market cap of $317.95 billion, a price-to-earnings ratio of 21.76, a price-to-earnings-growth ratio of 2.30 and a beta of 0.50. The business's fifty day moving average is $131.64 and its 200 day moving average is $149.16.

Alibaba Group (NYSE:BABA - Get Free Report) last released its quarterly earnings data on Tuesday, March 31st. The specialty retailer reported $0.01 earnings per share for the quarter. Alibaba Group had a return on equity of 4.76% and a net margin of 10.31%.The company had revenue of $35.30 billion for the quarter.

Institutional Inflows and Outflows

Several hedge funds have recently made changes to their positions in BABA. Brighton Jones LLC raised its position in shares of Alibaba Group by 40.4% in the 4th quarter. Brighton Jones LLC now owns 3,411 shares of the specialty retailer's stock worth $289,000 after acquiring an additional 981 shares in the last quarter. AQR Capital Management LLC bought a new position in shares of Alibaba Group in the 1st quarter worth about $254,000. Bank of Nova Scotia raised its position in shares of Alibaba Group by 313.0% in the 2nd quarter. Bank of Nova Scotia now owns 21,778 shares of the specialty retailer's stock worth $2,470,000 after acquiring an additional 16,505 shares in the last quarter. Daiwa Securities Group Inc. bought a new position in shares of Alibaba Group in the 2nd quarter worth about $1,613,000. Finally, Ieq Capital LLC raised its position in shares of Alibaba Group by 51.9% in the 2nd quarter. Ieq Capital LLC now owns 70,060 shares of the specialty retailer's stock worth $7,946,000 after acquiring an additional 23,925 shares in the last quarter. 13.47% of the stock is owned by institutional investors.

Alibaba Group Announces Dividend

The firm also recently disclosed an annual dividend, which will be paid on Monday, July 13th. Stockholders of record on Thursday, June 11th will be given a $1.05 dividend. The ex-dividend date of this dividend is Thursday, June 11th. This represents a dividend yield of 72.0%. Alibaba Group's dividend payout ratio (DPR) is 15.60%.

More Alibaba Group News

Here are the key news stories impacting Alibaba Group this week:

• Positive Sentiment: Multiple Wall Street firms raised price targets on Alibaba, including Nomura, Morgan Stanley, Mizuho, HSBC, and JPMorgan, signaling continued confidence in the stock’s upside as analysts focus on its cloud and AI growth. Nomura adjusts Alibaba Group price target to $207
• Positive Sentiment: Alibaba shares surged in Hong Kong as the company accelerated its pivot to AI, reinforcing the idea that investors are rewarding the shift toward higher-growth cloud and artificial intelligence businesses. Alibaba shares surge 7% in Hong Kong as firm accelerates pivot to AI
• Positive Sentiment: Recent coverage highlighted strong AI and cloud momentum, including triple-digit AI revenue growth and a 38% jump in cloud revenue, which supports the bull case that Alibaba’s heavy spending may eventually pay off. Alibaba Earnings: Cloud Acceleration Is A Bullish Catalyst
• Neutral Sentiment: The Trump-Xi summit ended with few concrete breakthroughs, but the absence of escalation is being viewed as a short-term plus for Chinese equities, including Alibaba. Trump-Xi Summit Ends With Few Breakthroughs
• Negative Sentiment: Alibaba’s latest earnings report showed profits under pressure as the company ramped up AI, cloud, and commerce spending, with some analysts warning that margins may stay strained in the near term. BABA Q4 Profit Falls on Heavy Tech Spending

Alibaba Group Company Profile

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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