Baird Bullish on BABA in the Next "Battle For e-Commerce"

BABA shares are set for a higher open thanks to Baird's bull note

Mar 29, 2019 at 9:23 AM
facebook X logo linkedin


Chinese tech giant Alibaba Group Holding Ltd (NYSE:BABA) is trading up 1.5% before the open, thanks to bullish analyst attention out of Baird. The brokerage firm lifted its price target to $195 from $178, citing what it sees as an undervalued asset in Alibaba's Lazada e-commerce business. Baird pointed to Lazada's footprint in Southeast Asia, a region it deemed the next "major battleground for e-commerce" and a huge growth opportunity due to its large population.

To be sure, most of Wall Street is already very bullish on BABA stock, with 21 of 22 covering firms recommending to buy it. Similarly, the consensus 12-month price target is $204.69. The shares traded as high as $211.69 back on June 5, but pulled back all the way to the $130 area by the end of 2018. So far in 2019, the equity has been on the rise, closing Thursday at $177.73.

There's been little interest from the options pits lately, with put and call open interest both holding near 52-week lows. What's more, the stock's 30-day at-the-money implied volatility of 25% ranks just 2 percentage points from an annual low. In other words, speculators are pricing in relatively low volatility expectations for near-term contracts. With that in mind, it's also worth noting that Alibaba has a Schaeffer's Volatility Scorecard (SVS) of 90 out of a potential 100, showing a strong tendency to surprise the options market with outsized moves.

 

 

 

Target Effortless Triple-Digit Gains Every Sunday Evening For Life!

This is your chance to triple your profit potential on Sunday evenings, without spending all your free time watching the market.

On Sundays, as a Weekend Plus subscriber, you’ll get up to 6 trades every Sunday, each targeting gains of 200% or more.

Start targeting gains like the ones our subscribers have seen recently, including:

213.3% GAIN on AutoNation calls
100.0% GAIN on Monster Beverage calls
100.4% GAIN on Walgreens Boots Alliance puts
100.4% GAIN on ON Semiconductor calls
257.7% GAIN on Dell calls

101.0% GAIN on Apollo Global Management calls
103.6% GAIN on JP Morgan  Chase calls
105.3% GAIN on DraftKings calls
101.3% GAIN on Airbnb calls
203.0% GAIN on Shopify calls
102.0% GAIN on Cboe Global Markets calls
100.9% GAIN on Boeing calls
102.1% GAIN on Microsoft puts
102.3% GAIN on First Solar calls
101.5% GAIN on PulteGroup calls
101.0% GAIN on Apple calls
209.4% GAIN on NXP Semiconductors calls
100.8% GAIN on Uber Technologies calls
100.4% GAIN on Academy Sports and Outdoors puts
102.2% GAIN on Trade Desk calls
100.8% GAIN on DoorDash calls
100.0% GAIN on Camping World Holdings puts
100.0% GAIN on Cboe Global Markets calls
100.2% GAIN on C3.ai calls
238.5% GAIN on Oracle calls

 
 
 


 
 

Rainmaker Ads CGI