ZACKS·2025-05-05 15:01Core Viewpoint - Alibaba (BABA) has shown a 7.9% increase in stock price over the past four weeks, with a mean price target of $158.20 indicating a potential upside of 25.8% from the current price of $125.76 [1] Price Targets and Estimates - The mean estimate consists of 20 short-term price targets with a standard deviation of $20.48, where the lowest estimate is $112 (10.9% decline) and the highest is $190 (51.1% increase) [2] - A low standard deviation among price targets suggests a high degree of agreement among analysts regarding the stock's price movement [9] Analyst Sentiment and Earnings Estimates - Analysts show strong agreement in revising earnings per share (EPS) estimates higher, which correlates with potential stock price increases [11] - The Zacks Consensus Estimate for the current year has increased by 1.2% over the past month, indicating positive sentiment [12] - BABA holds a Zacks Rank 2 (Buy), placing it in the top 20% of over 4,000 ranked stocks based on earnings estimates [13] Caution on Price Targets - Price targets can mislead investors, as empirical research indicates they rarely predict actual stock price movements [7] - Analysts may set overly optimistic price targets due to business incentives, which can inflate expectations [8] - While price targets should not be ignored, they should be approached with skepticism and not be the sole basis for investment decisions [10]