Finance

Goldman Sachs Predicts 31% Rise in Alibaba’s Hong Kong Stock

After having missed out on underwriting the Alibaba Group Holding’s Hong Kong share sale, Goldman Sachs has now predicted that Alibaba shares could go up by as much as 31% in next year. Analysts at Goldman Sachs have started coverage of the Alibaba stock and also gave it a buy rating.

Alibaba is the largest company in China, and Goldman analysts have cited the company’s experienced management team coupled with its reach in the Chinese digital market as major factors behind their call. Analyst Piyush Mubayi stated that the company could also capture as much as 33% of the payments space in China by next year.

He went on to add that there is a possibility that Alibaba is also going to generate growth in its core business, which is online retail. Alibaba stock has performed impressively since the share sale in Hong Kong back on November 26 and has recorded gains of 12% since. In total, the Chinese e-commerce giant managed to raise as much as $11.2 billion in the largest share sale in Hong Kong in seven years.

Goldman went on to add that if the company gets included in the trading links with Shenzhen and Shanghai, then Alibaba could get capital flows of as much as $5 billion in just three years. That being said, some analysts have also asked for caution, citing the fact that some restrictions might apply in Hong Kong.

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Jodie Miller

Jodie Miller is experienced journalist. She holds double degree in journalism and communication. She joined our team as a content curator. She enjoys writing and curating contents related to finance and forex world.

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