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Alibaba (BABA) shares were broadly higher on a heavy trading volume during the course of Thursday’s session as the UBS and Stifel upgraded their respective price objectives on the company’s stock.

UBS upgraded its price objective to $124, previously at $107 and reassigned a buy rating on the Chinese e-commerce company’s shares.

In other news, Alibaba was reported to practice capital allocation to cloud and the media, which seemed to generate exposure.    

Meanwhile, the UBS is expecting a ramp up on advertising monetization of the brand, along with the increasing e-commerce rates with the growing digital and mobile adoption.        

A survey was conducted on over 3,000 Chinese consumers, suggesting that Alibaba’s bottom line is expected to grow by higher demand for paid content, according to a source.

In addition, Stifel upgraded its price objective to $125, previously at $104 and maintained a buy rating on the company’s stock.

With Alibaba’s investments in cloud computing infrastructure, including its expansion abroad, digital media content and distribution and high demand e-commerce areas, analysts had expected that it will help ramp up its operating leverage.

Stifel is also expecting the company to post a bottom EBITDA for fiscal 2018 before increasing in the next succeeding years.

Analysts’ Recommendation

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The stock’s 52-week high stood at $109.76 today.

About 28.53 million shares were traded today, compared to the average 30-day volume of 21.42 million shares per day.

Moreover, TheStreet Ratings Team has issued a Hold rating, with a score of C on Alibaba’s stock.

It appears that the primary factors that generally affected the rating had mixed results, in which the company’s strengths can be seen on its strong revenue growth, along with its solid stock price performance and positive cash flow from operations.

Subsequently, Alibaba Group Holding Ltd. was among the top analyst upgrades amid Thursday’s session, in which Stifel reaffirmed a Buy rating, and upgraded a price objective from $104 to $125.

It has a consensus analyst price objective of 110.50 and a 52-week trading of $57.20 to $106.19, suggesting a 1.9 rally at $108.05 on Thursday’s close of trade.   

Current Stance of Shares

The chart below illustrates the current stance of BABA stock’s movement after Stifel upgraded its price target on the company’s stock, in which three candlesticks were pointed that serves as a trend. Meanwhile, market investors were given a signal to execute Buy position on the third candle, which in fact did edged higher away from the support level.

In addition, the stock prices showed a reversal in three consecutive sessions, and tried to break out on the upside.

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Conclusion

Given that BABA stock’s is prone to an upside bias, led by their investments in cloud computing infrastructure. We conclude that stock prices will continue to rally as the current stance of today’s stock is far away from its support level.   

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