5 Cheap Chinese Stocks to Buy According to Analysts

3. Alibaba Group Holding Limited (NYSE:BABA)

Average Price Target: $142.71
Upside Potential: 56.31%
Price to Earnings Multiple: 24.1

Alibaba Group Holding Ltd (NYSE:BABA) is turning out to be one of the cheapest Chinese stocks with the easing of regulatory scrutiny from authorities in China. While trading at about $91 a share, it is flat for the year and about 40% from its IPO share prices. In addition, its valuation has tanked to its lowest level with a price-to-sales multiple of 2, much lower than the five-year average of about 6.

The easing of covid 19 restrictions and regulatory pressures should significantly impact a company that has grown revenues at an annualized rate of 35%. In a bid to unlock more value, management has sought to break the conglomerate into six different business units, each with an independent management team. The restructuring should reduce bureaucracy and improve the focus.

Likewise, analysts on wall street remain optimistic about Alibaba Group Holding Ltd (NYSE:BABA)’s long-term prospects going by the average price target of $142.71, implying a 56.31% upside potential from current levels.