Analysts Think These 5 Chinese Stocks Could Rebound in 2022

1. Alibaba Group Holding Limited (NYSE:BABA)

Number of Hedge Fund Holders: 115

Alibaba Group Holding Limited (NYSE:BABA) is one of the most well-known Chinese ecommerce retailers that suffered greatly at the hands of the Chinese tech crackdown. The company allows technology infrastructure and marketing reach to sellers from around the world. 

Sam Le Cornu, the CEO and co-founder at Stonehorn Global Partners, announced on January 6 that his firm is buying more shares in Alibaba Group Holding Limited (NYSE:BABA). Cornu suggested that this is a buy opportunity given the company’s earnings outlook and valuation. 

Truist analyst Youssef Squali on January 26 lowered the price target on Alibaba Group Holding Limited (NYSE:BABA) to $180 from $200 but kept a Buy rating on the shares as part of a broader research note on Internet and Digital Media. In the long-term, the analyst “remains impressed” by Alibaba Group Holding Limited (NYSE:BABA)’s “massive opportunity” in China and Southeast Asia.

115 hedge funds in the third quarter of 2021 were bullish on Alibaba Group Holding Limited (NYSE:BABA), with stakes totaling $10.2 billion. Fisher Asset Management increased its position in Alibaba Group Holding Limited (NYSE:BABA) in Q3 2021 by 1%, holding 14.2 million shares worth $2.1 billion. Billionaire Charlie Munger’s Daily Journal Corp also elevated its position in Alibaba Group Holding Limited (NYSE:BABA) in Q3, holding over 600,000 shares worth $71.5 million. Munger’s endorsement of the stock also eased the paranoia of investors regarding the Chinese tech giant. 

Here is what Aikya has to say about Alibaba Group Holding Limited (NYSE:BABA) in its Q4 2021 investor letter:

“Most investors looking to invest in high quality and sustainable businesses in Emerging Markets start their assessment by analyzing the franchise and the financial statements – but often miss the risks associated with questionable stewardship. For example:

Alibaba was widely understood to be a high-quality and sustainable company, with the appearance of a business that empowered SME merchants while generally contributing to technology and financial infrastructure in China. Its dominant e-commerce franchise delivered healthy ROEs for several years, to the contentment of investors. We believe that the competitive advantage was explained mostly by the management’s early links to the Shanghai faction of the CCP. As the political winds have changed, the business has proven to be less resilient than first perceived.”

You can also take a look at 15 Worst Stock Picks of Cathie Wood and 9 Stocks That Credit Markets Expert Steve Ketchum Likes.

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