Alibaba's Dividend Safety Score Raises Concerns: Analysts Predict 12.27% Upside, GF Value Indicates 17.05% Downside.

Alibaba Group Holding Limited (BABA) faces concerns over its dividend safety, with a Dividend Safety Score of F, indicating a 64.4% risk of dividend reduction. Analysts project a notable price increase, with an average target price of $151.57, representing a 12.27% upside from the current price. However, the GF Value estimate suggests caution, with a projected value of $111.98, a 17.05% downside from the current price.

Alibaba Group Holding Limited (BABA), a leading e-commerce and technology company, has recently faced concerns over its dividend safety. A recent analysis has assigned BABA a Dividend Safety Score of F, indicating a 64.4% risk of dividend reduction [1]. This score is based on a variety of factors, including the company's payout ratio and cash flow coverage.

The company's dividend yield stands at 0.78%, which is well covered by earnings. However, analysts have noted that BABA's dividend payments have been stable but have not been consistent for an extended period. The company has only paid a dividend for two years, which could be a factor in the high risk assessment [1].

Despite the dividend concerns, analysts have projected a notable price increase for BABA. The average target price is $151.57, representing a 12.27% upside from the current price. This optimism is driven by the company's strong earnings and the potential for growth in its cloud and AI businesses [2].

However, the GF Value estimate suggests caution. The projected value is $111.98, a 17.05% downside from the current price. This estimate takes into account the company's recent challenges, including regulatory risks and trade tensions [3].

In conclusion, while Alibaba Group Holding Limited faces concerns over its dividend safety, analysts remain optimistic about the company's growth potential. However, investors should exercise caution and consider the potential risks before making investment decisions.

References:

[1] https://simplywall.st/stocks/us/retail/nyse-baba/alibaba-group-holding/dividend
[2] https://simplywall.st/stocks/us/retail/nyse-baba/alibaba-group-holding/analyst-forecasts
[3] https://simplywall.st/stocks/us/retail/nyse-baba/alibaba-group-holding/valuation