Alibaba has received a 500,000 yuan ($76,463) fine from the State Administration for Market Regulation (SAMR) for not properly declaring its previous acquisitions, according to CNBC.
Alibaba (BABA) recently bought a controlling stake in the department store operator, InTime. The SAMR noted that although Alibaba’s acquisition did not eliminate or restrict competition, they did not submit the proper paperwork.
Chinese regulators have intensified their efforts to regulate technology firms, which have a dominant presence in China. The fines are small but they signify the SAMR’s intent to uphold current monopoly laws.
China’s top banking regulator put fintech companies on notice last week, suggesting “timely and targeted measures to prevent new systemic risks.” (See BABA stock analysis on TipRanks)
Baird analyst Colin Sebastian reiterated his Buy rating on the stock last month with a price target of $325 (23% upside potential). He noted that interactive content is becoming increasingly popular in China and Western markets.
Consensus among analysts is a Strong Buy based on 23 Buys, 0 Holds and 0 Sells. The average price target of $338.94 implies upside potential of around 28% over the next 12 months.
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