Erste Group Bank Forecasts Higher Earnings for Alibaba Group

Key Points

• Erste Group Bank raised Alibaba’s FY2027 EPS forecast to $5.81 from $5.66 and projected FY2028 EPS of $8.41, though the FY2027 estimate remains below the $5.91 consensus.
• Analyst sentiment remains favorable overall, with Alibaba receiving a consensus “Moderate Buy” rating and an average price target of $187.45, despite several brokerages recently adjusting their targets.
• Alibaba’s latest quarter showed mixed results: EPS of $1.26 missed the $1.94 consensus, while revenue reached $39.64 billion, up 8.6% year over year and slightly ahead of estimates.

Alibaba Group Holding Limited (NYSE:BABA - Free Report) - Analysts at Erste Group Bank raised their FY2027 earnings per share (EPS) estimates for Alibaba Group in a research note issued to investors on Tuesday, September 8th. Erste Group Bank analyst S. Lingnau now forecasts that the specialty retailer will post earnings per share of $5.81 for the year, up from their prior estimate of $5.66. The consensus estimate for Alibaba Group's current full-year earnings is $5.91 per share. Erste Group Bank also issued estimates for Alibaba Group's FY2028 earnings at $8.41 EPS.

A number of other brokerages have also issued reports on BABA. Robert W. Baird reduced their target price on shares of Alibaba Group from $164.00 to $160.00 and set an "outperform" rating on the stock in a research report on Friday, August 21st. Sanford C. Bernstein restated an "outperform" rating and issued a $165.00 price objective on shares of Alibaba Group in a research report on Monday, September 7th. Nomura reduced their price objective on Alibaba Group from $207.00 to $178.00 and set a "buy" rating on the stock in a report on Thursday, June 25th. Zacks Research upgraded Alibaba Group from a "strong sell" rating to a "hold" rating in a research report on Tuesday, June 2nd. Finally, Susquehanna lifted their target price on Alibaba Group from $185.00 to $190.00 and gave the company a "positive" rating in a research note on Friday, August 28th. Two analysts have rated the stock with a Strong Buy rating, fifteen have assigned a Buy rating and five have assigned a Hold rating to the stock. According to data from MarketBeat.com, Alibaba Group currently has an average rating of "Moderate Buy" and a consensus price target of $187.45.

Alibaba Group Trading Down 0.0%

BABA opened at $109.28 on Monday. The company has a current ratio of 1.36, a quick ratio of 1.36 and a debt-to-equity ratio of 0.21. The stock has a market capitalization of $271.63 billion, a PE ratio of 26.46, a PEG ratio of 1.44 and a beta of 0.51. Alibaba Group has a 1-year low of $91.99 and a 1-year high of $192.67. The firm has a 50-day moving average price of $117.61 and a two-hundred day moving average price of $123.31.

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

Insider Activity at Alibaba Group

In other Alibaba Group news, CEO Yongming Wu purchased 350,000 shares of the company's stock in a transaction that occurred on Monday, August 24th. The stock was acquired at an average cost of $14.24 per share, with a total value of $4,984,000.00. Following the completion of the purchase, the chief executive officer directly owned 1,364,418 shares in the company, valued at approximately $19,429,312.32. This represents a 34.50% increase in their position. The acquisition was disclosed in a legal filing with the Securities & Exchange Commission, which is available at the SEC website. Also, President J. Evans sold 720,000 shares of the stock in a transaction that occurred on Monday, June 29th. The shares were sold at an average price of $94.95, for a total transaction of $68,364,000.00. Following the completion of the transaction, the president owned 28,000 shares in the company, valued at $2,658,600. This represents a 96.26% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. Insiders have sold 920,303 shares of company stock worth $70,796,370 over the last 90 days. Insiders own 12.50% of the company's stock.

Institutional Inflows and Outflows

Large investors have recently made changes to their positions in the stock. Brighton Jones LLC increased its holdings in Alibaba Group by 40.4% in the fourth quarter. Brighton Jones LLC now owns 3,411 shares of the specialty retailer's stock valued at $289,000 after purchasing an additional 981 shares during the last quarter. AQR Capital Management LLC bought a new position in Alibaba Group during the first quarter worth about $254,000. Bank of Nova Scotia grew its position in shares of Alibaba Group by 313.0% during the 2nd quarter. Bank of Nova Scotia now owns 21,778 shares of the specialty retailer's stock worth $2,470,000 after buying an additional 16,505 shares during the period. Daiwa Securities Group Inc. acquired a new position in shares of Alibaba Group during the 2nd quarter worth about $1,613,000. Finally, Ieq Capital LLC increased its stake 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 valued at $7,946,000 after acquiring an additional 23,925 shares during the last quarter. Institutional investors and hedge funds own 13.47% of the company's stock.

Key Alibaba Group News

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

• Positive Sentiment: AI-powered logistics partnership: Alibaba.com and DHL are collaborating on AI tools intended to help small businesses improve logistics and global commerce. The initiative reinforces Alibaba’s strategy of monetizing AI across its e-commerce ecosystem. Alibaba Group, DHL Partner on AI Logistics for Small Businesses
• Positive Sentiment: Broader AI growth narrative: Coverage highlighted Alibaba’s dominant position in Chinese e-commerce, cloud infrastructure and its expanding AI efforts, including the Accio AI agent and Wan3.0 model. Reports that Alibaba may lead a $300 million funding round for AI startup UniPat could further signal aggressive investment in the sector, though the report remains unconfirmed. Alibaba vs. MercadoLibre: Which E-Commerce Giant Is a Better Buy in 2026?
• Neutral Sentiment: Analyst and media interest: Articles remain focused on whether Alibaba’s cloud, e-commerce and AI businesses offer a more attractive investment than MercadoLibre. A bullish technical-stock signal was also publicized, but neither item represents a new company announcement or material change to fundamentals. Alibaba Stock Signal Has Never Been Wrong
• Negative Sentiment: Geopolitical and regulatory risk: Reports say Washington is scrutinizing AI “distillation” practices, potentially threatening Alibaba Cloud’s access to customers, technology or markets. These allegations could increase compliance costs and limit the growth outlook for its rapidly expanding cloud business. Alibaba Drops as Washington Turns AI Distillation Into Geopolitical Risk
• Negative Sentiment: Repeated securities litigation notices: Multiple law firms publicized a class-action lawsuit and an October 5 lead-plaintiff deadline. The complaints allege Alibaba failed to disclose potential Chinese military ties and misrepresented AI-distillation activities; these claims have not been proven. The repeated notices may weigh on sentiment and raise potential legal and reputational risks. BABA Investor Deadline

Alibaba Group Company Profile

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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