Investing.com reported that Benchmark analysts recently reiterated a Buy rating on Alibaba (NYSE:BABA) stock, with a price target of $180 per share. The strong endorsement is a reflection of the expected upside potential of around 83%, as well as their confidence in the company’s fundamental recovery. This comes at a time in which Alibaba’s share price is up 11.7% year-to-date.
Alibaba Group Holding Limited, commonly known as Alibaba, is a Chinese multinational conglomerate specializing in e-commerce, retail, Internet, AI, and technology-driven industries, among others. Founded in 1999 by Jack Ma and other experienced investors, Alibaba is one of the world’s largest technology companies, and its success has been tied to the development of China’s economy.
The news of the split of Alibaba into six new business units was seen as positive by Benchmark analysts, who believe that this move can help to boost the company’s fundamental competitiveness and value in the long-term. Furthermore, the channel checks sent positive signals, with the marketplace recovery in F4Q23 being largely on track. Direct sales could see some softness, however, due to the normalcy of offline grocery shopping, but Benchmark analysts are confident in the outlook of the company despite some short-term headwinds.
Jack Ma, the co-founder and executive chairman of Alibaba Group, is widely regarded as one of the most successful entrepreneurs in China. He is currently the second-richest man in China and one of the wealthiest people in the world, with estimated personal wealth of over $50 billion. Ma achieved recognition for his business leadership by revolutionizing e-commerce in China, transforming the industry and unleashing tremendous economic growth in his region. He takes an active approach to philanthropy, having donated millions of dollars to various charities, and is highly respected for his hard work and innovation.