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Alibaba shares could nearly double IPO price in a year
A second-day selloff in Alibaba shares didn’t worry analysts at MKM Partners, who believe there are a number of investment positives that could lead to a near doubling of the company’s share price during the next year.
The Chinese ecommerce giant’s shares BABA, -4.26% slumped 4.5% in midday trading Monday, but were still 32% above the initial public offering price of $68. On Friday, the stock’s first day of trading, it closed at $93.89, or 38% above the IPO price.
MKM analyst Rob Sanderson initiated research coverage of Alibaba with a buy rating, and a 12-month price target of $125, saying the company is a “powerhouse” in what is currently the best secular growth market for Internet retailing. “We see [Alibaba shares] has a core holding for growth managers,” Sanderson said.
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