Why Barron's Added Alibaba to Their 2025 Buy List

Group 1 - The article highlights the growing interest in Alibaba Group as a potential investment opportunity for 2025, with notable endorsements from prominent investors and analysts [1][5][20] - Alibaba's current stock price is $85.14, reflecting a 3.48$66.63 and $117.82, and a price target set at$114.07, indicating a potential upside of 35.3% [2][26] - Major investors, including Michael Burry and David Tepper, have significantly increased their positions in Alibaba, indicating confidence in the stock's future performance [5][11] Group 2 - Analysts are optimistic about Alibaba's valuation, with projections suggesting a potential price target of $145 per share from Macquarie, which would require a 72$25 billion share buyback program, signaling confidence in the company's future valuation [7] - The stock's P/E ratio of 17.1 is significantly lower than the retail sector's average of 108.9, suggesting it is undervalued [7] Group 3 - The article notes a divergence in Asia's bond market, with China's economy now perceived as having a better risk-to-reward ratio compared to Japan [3] - Institutional investors are increasingly bullish on Alibaba, with several analysts raising their ratings and valuations for the stock [9][12] - The iShares MSCI China ETF offers a dividend yield of up to 2.5%, which is higher than the current yield of China's ten-year bond, typically indicating a buying opportunity [25]