Shares of Alibaba Group Holding Ltd jumped on Wednesday, putting them on track to post their worst five-day performance in public history, as Susquehanna analyst Shyam Patil lowered his price target, but kept his focus on China. Continued to pursue a “positive” outlook. based e-commerce giant.
It rose 0.7% in afternoon trading, marking the first gain in six sessions.
The stock had closed on Tuesday at its lowest price since January 3, 2019, down 20.6% in the past five sessions. Some of the factors weighing on the stock included regulatory concerns and macroeconomic pressures in China, which topped with a disappointing fiscal second quarter. Reported results last week.
The five-day selloff was the biggest since the stock went public in September 2014. The last weakest five-day run, prior to the current stretch of losses, was a 16.3% drop as of August 20, 2021.
Susquehanna K Patil lowered his stock price target from $310 to $200, but his new target is still about 50% above current levels. He also reiterated his positive rating on Alibaba since at least February 2020.
,[Alibaba] As Patil wrote in a note to clients, the regulator is dealing with the overhang, and is now putting pressure on slowing macro business in China. “While COVID could lead to a period of near-term macro moderation, we continue to see [Alibaba] As the killer of China e-commerce category with a huge secular growth opportunity and maintain our long-term-oriented positive outlook. ,
Of the 52 analysts surveyed by FactSet who cover Alibaba, no fewer than 36 have cut their stock price targets since Alibaba reported earnings on Nov. It reduced the average price target of $201.46 from $236.98 at the end of October.
Meanwhile, 47, or 90%, of those analysts are bullish on the stock, up from 89% at the end of October. Of the five analysts who are not bullish, only one is bearish and the other four are neutral.
Alibaba shares are down 51.9% over the past year, while iShares MSCI China Exchange-traded Fund MCHI 17.7% and the S&P 500 index is down spx 29.0% up. Some analysts have pointed to Alibaba’s Investor Day, which begins on December 16, as a potentially important catalyst for the stock’s move forward.
Separately, Susquehanna’s Patil has also partnered with China-based search-engine giant Baidu Inc. Reiterating our positive rating on BIDU.
Lowered his stock price target from $200 to $175.
While the company continues to be cautious about the pandemic situation, Patil said that his long-term bullish outlook remains unchanged, as he sees the company as a “leading player in China’s search market, a major player in the feed market, an owner of View as the clear market leader in the top video assets and AI applications in the country.”
The stock lost 0.1% in afternoon trading on Wednesday. Although it was still up 11.9% over the past 12 months, it has lost more than half its value since closing at a record $339.91 on February 19.
Patil is a Chinese e-commerce company JD.com Inc. Stay neutral on JD too.
But it raised its stock price target from $80 to $95 in the wake of “solid” third-quarter results, because of the long-term potential fueled by its advertising and logistics initiatives and the company’s ability to successfully incubate new businesses.
JD.com’s stock fell 0.7% on Wednesday. It has increased by 18.1% in the last three months, but has declined by 1.1% in comparison to the previous year.