Alibaba Group Holding Ltd (NYSE:BABA) is in the spotlight today after Aaron Kessler of Raymond James reiterated his ‘Strong Buy’ and $138 price target after meeting with Alibaba’s investor relations head. The analyst is bullish in part due to his expectation of continued robust e-commerce growth coupled with continued strong cloud sales growth. Given Alibaba’s reasonable forward P/E ratio of 25.28 and its wide moat, the analyst also likes Alibaba’s valuation.
Separately, many traders are paying attention to Alibaba due to today’s Trump-Xi meeting. President Trump has been famous for his protectionist policies on the campaign trail and shares of Chinese related stocks could take a hit if Trump follows through. On the other hand, meetings between the heads of nations have generally been cordial in the past, and Chinese stocks could bounce if there is no negative news that comes out and sentiment improves.
What Does The Smart Money Sentiment Say?
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The smart money may have missed out somewhat on Alibaba’s recent rally. According to our numbers, 86 elite funds were long Alibaba Group Holding Ltd (NYSE:BABA) at the end of December, down 18 funds from the previous quarter.
The Bottom Line
Alibaba Group Holding Ltd (NYSE:BABA) shares are in the spotlight due to analyst commentary, today’s Trump-Xi meeting. For more reading, check out ‘10 Best Selling Products On Alibaba‘.