Commercial and investment banking major J.P. Morgan Chase & Co. (JPM) recently announced that it will be providing credit card payments processing support to Alibaba.com, the B2B business unit of Alibaba Group, in the U.S.
Following the news, shares of the company declined marginally on Thursday. The stock, however, pared its losses slightly to close at $158.15 in extended trade.
With online sales hitting new highs daily, seamless payment processing systems are necessary to offer customers a hassle-free experience. With J.P. Morgan’s payments processing capabilities, Alipay, a leading digital life services platform operated by Ant Group, can now provide improved card payment services in the U.S. for Alibaba.com.
The Global Head of Wholesale Payments at J.P. Morgan, Takis Georgakopoulos, said, “We are thrilled to begin processing payments for Alibaba.com as they continue to expand in the U.S., providing ease of doing business across buyers and sellers.” (See JP Morgan stock chart on TipRanks)
Recently, Credit Suisse analyst Susan Roth Katzke reiterated a Buy rating on the stock with a price target of $177. The analyst’s price target implies upside potential of 12% from current levels.
The Wall Street community is cautiously optimistic about the stock with a Moderate Buy consensus rating based on 7 Buys, 4 Holds and 1 Sell. The average J.P. Morgan price target of $170.27 implies that the stock has upside potential of 7.7% from current levels.
J.P. Morgan scores a “Perfect 10” from TipRanks’ Smart Score rating system, indicating that the stock has strong potential to outperform market expectations. Shares have gained about 60.4% over the past year.
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