After a terrible outing in 2022, Alibaba (BABA) is showing big signs of life.
In fact, over the last few weeks, the stock ran from a low of about $70 to $117.01. And while impressive, BABA could see higher highs. If it can break above prior resistance around $125, it could potentially test $140, and perhaps even refill a bearish gap around $160.
Helping, Morgan Stanley just raised its price target on BABA to $150 from $100. Citi raised its target to $160 from $144, and Barclays raised from $114 to $141.
All as China just begins to reopen, and as analysts get a bit less gloomy.
According to Bloomberg, “The resumption of activity in China promises to unleash over $836 billion of excess savings, and may help ease fears of a global downturn as other central banks continue to tighten policy. Chinese equities stand to gain another 20%.”
Even better, Chinese stocks could be some of the top performers in 2023, with Morgan Stanley and Goldman Sachs noting the MSCI China Index could see another 10% of upside this year.
BABA is just one of many Chinese stocks that could see higher highs. We’ll discuss even more opportunities to consider over the next week.