Erste Group Bank Expects Higher Earnings for Alibaba Group

Key Points

• Erste Group Bank raised Alibaba’s FY2027 EPS forecast slightly to $5.82 from $5.81, though the estimate remains below the $5.91 analyst consensus.
• Analysts maintain a broadly positive view, with Alibaba carrying a “Moderate Buy” consensus rating and an average price target of $187.45.
• Alibaba’s latest quarterly results showed revenue growth of 8.6% year over year to $39.64 billion, but EPS of $1.26 missed expectations of $1.94; the stock recently opened at $115.97.

Alibaba Group Holding Limited (NYSE:BABA - Free Report) - Equities researchers at Erste Group Bank upped their FY2027 earnings estimates for Alibaba Group in a research report issued on Friday, September 18th. Erste Group Bank analyst S. Lingnau now expects that the specialty retailer will post earnings per share of $5.82 for the year, up from their prior estimate of $5.81. The consensus estimate for Alibaba Group's current full-year earnings is $5.91 per share.

Other equities analysts also recently issued reports about the company. Susquehanna raised their price target on Alibaba Group from $185.00 to $190.00 and gave the company a "positive" rating in a report on Friday, August 28th. JPMorgan Chase & Co. lifted their target price on shares of Alibaba Group from $205.00 to $210.00 and gave the stock an "overweight" rating in a report on Friday, August 21st. Sanford C. Bernstein reiterated an "outperform" rating and issued a $165.00 target price on shares of Alibaba Group in a research note on Monday, September 7th. Nomura cut their price target on shares of Alibaba Group from $207.00 to $178.00 and set a "buy" rating on the stock in a report on Thursday, June 25th. Finally, Barclays raised their price target on shares of Alibaba Group from $195.00 to $200.00 and gave the company an "overweight" rating in a research report on Friday, August 21st. Two analysts have rated the stock with a Strong Buy rating, fifteen have given a Buy rating and five have assigned a Hold rating to the company. According to data from MarketBeat.com, Alibaba Group currently has a consensus rating of "Moderate Buy" and a consensus price target of $187.45.

Alibaba Group Stock Up 2.4%

BABA stock opened at $115.97 on Tuesday. Alibaba Group has a twelve month low of $91.99 and a twelve month high of $192.67. The company has a quick ratio of 1.36, a current ratio of 1.36 and a debt-to-equity ratio of 0.21. The firm has a market cap of $288.26 billion, a PE ratio of 28.08, a price-to-earnings-growth ratio of 1.49 and a beta of 0.51. The business has a 50 day moving average of $118.06 and a 200 day moving average of $121.81.

Alibaba Group (NYSE:BABA - Get Free Report) last released its earnings results on Friday, August 14th. The specialty retailer reported $1.26 earnings per share (EPS) for the quarter, missing the consensus estimate of $1.94 by ($0.68). The business had revenue of $39.64 billion for the quarter, compared to analysts' expectations of $39.52 billion. Alibaba Group had a net margin of 7.00% and a return on equity of 4.79%. Alibaba Group's revenue for the quarter was up 8.6% on a year-over-year basis. During the same quarter in the previous year, the business posted $14.75 earnings per share.

Insider Activity at Alibaba Group

In other news, insider Fang Jiang sold 4,898 shares of Alibaba Group stock in a transaction on Thursday, June 25th. The shares were sold at an average price of $12.09, for a total transaction of $59,216.82. Following the transaction, the insider owned 5,559,511 shares in the company, valued at $67,214,487.99. This trade represents a 0.09% decrease in their position. The sale was disclosed in a legal filing with the SEC, which is available through this hyperlink. The sale was made to cover tax withholding obligations related to the vesting of equity awards. Also, General Counsel Siying Yu sold 6,772 shares of the business's stock in a transaction on Thursday, June 25th. The shares were sold at an average price of $12.10, for a total transaction of $81,941.20. Following the sale, the general counsel directly owned 607,234 shares of the company's stock, valued at approximately $7,347,531.40. The trade was a 1.10% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. The sale was made to cover tax withholding obligations related to the vesting of equity awards. Insiders have sold 920,303 shares of company stock valued at $70,796,370 in the last 90 days. 12.50% of the stock is owned by company insiders.

Hedge Funds Weigh In On Alibaba Group

Institutional investors and hedge funds have recently bought and sold shares of the stock. Aureus Asset Management LLC grew its holdings in shares of Alibaba Group by 511.0% in the first quarter. Aureus Asset Management LLC now owns 9,361 shares of the specialty retailer's stock valued at $1,174,000 after purchasing an additional 7,829 shares in the last quarter. Teachers Retirement System of The State of Kentucky raised its stake in Alibaba Group by 24.5% during the first quarter. Teachers Retirement System of The State of Kentucky now owns 259,580 shares of the specialty retailer's stock valued at $32,567,000 after purchasing an additional 51,000 shares in the last quarter. IPG Investment Advisors LLC raised its stake in Alibaba Group by 97.8% during the second quarter. IPG Investment Advisors LLC now owns 17,019 shares of the specialty retailer's stock valued at $1,647,000 after purchasing an additional 8,415 shares in the last quarter. Thornburg Investment Management Inc. lifted its position in Alibaba Group by 5.5% during the fourth quarter. Thornburg Investment Management Inc. now owns 584,028 shares of the specialty retailer's stock valued at $85,607,000 after purchasing an additional 30,644 shares during the last quarter. Finally, Eurizon Capital SGR S.p.A. bought a new position in Alibaba Group during the fourth quarter valued at $21,266,000. 13.47% of the stock is currently owned by hedge funds and other institutional investors.

Alibaba Group News Summary

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

• Positive Sentiment: New AI chip and data-center ambitions: Alibaba unveiled the Zhenwu V900, which it says delivers roughly three times the performance of its predecessor. The company plans to build more than 20 gigawatts of global data-center capacity by 2032, strengthening its position in AI infrastructure and potentially supporting long-term cloud growth. Alibaba shares jump as new AI chip, data center buildout plans unveiled
• Positive Sentiment: Broader full-stack AI strategy: Alibaba outlined plans spanning chips, cloud infrastructure, models and AI agents, including a proposed model with 5 trillion to 10 trillion parameters. The strategy signals substantial investment but also creates potential demand for Alibaba Cloud and related AI services. Alibaba plans AI model with 5 trillion to 10 trillion parameters, unveils new chip
• Positive Sentiment: Favorable AI-sector sentiment: Renewed optimism around AI demand, helped by early interest in Meta’s personal-agent technology, lifted chip and AI-related stocks broadly. That sector-wide momentum provided an additional tailwind for Alibaba’s announcement. Alibaba Unveils Powerful AI Chip as Meta Revives AI Optimism
• Neutral Sentiment: Modest analyst estimate increase: Erste Group raised its FY2027 EPS forecast to $5.82 from $5.81, still slightly below the $5.91 consensus estimate. The revision suggests limited immediate earnings impact from the latest developments. Alibaba Group analyst estimate update
• Negative Sentiment: Litigation overhang: Several law firms publicized a securities-fraud class action against Alibaba, with an October 5 lead-plaintiff deadline. The announcements do not establish wrongdoing, but they add headline risk, potential costs and uncertainty for shareholders. Alibaba Group sued for securities law violations
• Negative Sentiment: U.S.-China technology risk: The Pentagon blacklist and ongoing U.S.-China tensions could restrict Alibaba’s access to technology, customers or international markets, potentially complicating its AI ambitions. Pentagon blacklist lingers in Trump-Xi talks

About Alibaba Group

Alibaba Group Holding Limited is a global technology and commerce company founded in 1999 by Jack Ma and a group of co-founders. Headquartered in Hangzhou, China, the company operates a broad ecosystem of businesses serving consumers, merchants, brands and enterprises.

Its core businesses include online and mobile commerce platforms such as Taobao and Tmall in China, as well as international marketplaces including AliExpress and Lazada. Alibaba also provides wholesale commerce, cross-border retail, logistics through Cainiao, local consumer services, digital media and entertainment, and other consumer-focused technology services.

Alibaba Cloud provides cloud computing, data storage, artificial intelligence and related technology solutions to businesses and organizations.

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