by winston » Sat Dec 16, 2017 10:33 am
George Soros Stocks to Buy: Altaba (AABA)
Investment company Altaba Inc (NASDAQ:AABA) is seen by many as a cheap play on Chinese e-commerce giant Alibaba Group Holding Limited (NYSE:BABA).
Since initiating the position in Q217, Soros has built up a position of 2.8 million shares valued at $185.7 million. This makes AABA the fourth-largest stock in the fund’s portfolio.
AABA, formerly Yahoo!, has a 15% stake in Alibaba which is now worth a massive $65 billion. AABA is up 81% year-to-date largely due to its valuable BABA stake. Nonetheless, the stock still trades at a big discount to the sum of its assets. It is likely that at some point the company will wind down and distribute its value to shareholders.
In the meantime, however, five-star Oppenheimer analyst Jason Helfstein is bullish on AABA’s outlook. He says shares are undervalued and reiterated his buy rating on Nov. 7.
“We are raising our AABA target to $99 from $75, following a more bullish outlook for BABA shares. BABA reported strong F2Q results, with the Ant Financial SME loan business growing ~400% y/y.
As a result, we increased our BABA target price to $220.” Other elements supporting AABA include: the market value of Yahoo Japan shares ($9 billion) as well as its cash & marketable debt securities portfolio.
Overall the stock has a relatively positive Moderate Buy analyst consensus rating on TipRanks. The average analyst price target of $85 indicates 23% upside from the current share price.
Source: Investor Place
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