Morgan Stanley's bullish outlook on Alibaba: idea 10/04/24

4월 10일

Against the backdrop of recent underperformance in the stock market, Alibaba Group Holding Ltd, the Chinese internet retail giant, has seen its shares dip by approximately 7.5% since the year's start. Despite this, some analysts express a more optimistic outlook for the company's stock trajectory over the next twelve months.

Morgan Stanley's analysts project a potential uptick in Alibaba Group's stock value, forecasting a nearly 19% increase to 85 USD within the next year. This projection stands roughly 19% above the current trading price. Nonetheless, the firm adopts a "market perform" stance, acknowledging the ongoing macroeconomic pressures and the company's ongoing transformation efforts that have yet to reach fruition.

Let's turn our attention to a technical analysis of Alibaba Group Holding Ltd (NYSE: BABA) stock and explore potential trading strategies.

The Daily (D1) chart shows the establishment of a support level at 70.65 USD and a resistance marker at 78.30 USD. Following a breach of the downtrend line, stock prices are now navigating the channel defined by these support and resistance levels, indicating room for growth should the resistance be surpassed. Conversely, a breach below the support level could cause the stock to decline to a floor of 57 USD.

Initiating buys aiming for a target price of 80.65 USD can be considered in the short term. For those looking toward a medium-term horizon, maintaining long positions to reach 89.00 USD could be a strategic move.

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