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If you didn’t get shares of Alibaba (BABA) at the $68 offering price — it’s probably too late to chase them. But don’t worry, there are better choices, according to analysts.
With shares of Alibaba trading at $90 a share, that’s already about the $92 a share that analysts think the company is worth. But there are 7 other Chinese stocks that trade on major U.S. stock exchanges that have more potential upside, according to analysts.
Chinese stocks like Cheetah Mobile (CMCM)Qihoo 360 (QIHU) and Sina (SINA) have 40% or more upside before hitting the average Wall Street 18-month price targets and that have at least five analysts covering them and are rated a “buy” or “outperform,” according to a USA TODAY analysis of data from S&P Capital IQ.
When it comes to upside, it’s hard to beat Cheetah Mobile. The company sells devices and services for mobile computing users in China. It’s a hot area — but surprisingly analysts still see astounding upside. The average price target on the stock by the six analysts covering it is $197.59. If that target is on target, that represents a 722% potential upside from the stock’s current price of $24.04. And it’s easy to see why analysts are so bullish. Earnings are expected to grow 183% in 2014.
Chart source: MSN Money
Chart source: MSN Money
Then there’s Qihoo 360, which provides computer mobile and Internet security services in China. Analysts are calling for 74% upside on this stock with the 18-month price target of $132.13. Shares are now trading for $75.86 a share today. Again, it’s another story of rapid growth. Analysts expect the company to post 45% higher earnings in 2014.
Lastly, rather than being bummed about missing Alibaba, check out Chinese online media company SINA. Analysts have an 18-month price target of $66 a share on the stock. That’s a big-time upside of 47% from the stock’s current price of $44.90. Sina is expected to have a down year, with earnings forecasted off 28% in 2014. But earnings are seen taking off in 2015, jumping 91%, says S&P Capital IQ.
So if you missed Alibaba at $68, that’s a shame. But you can perhaps do better.
Below are the seven Chinese stocks trading on U.S. exchanges that have at least 5 analysts and the most potential upside to the price targets:
CompanyTickerPrice targetUpside to targetRating
Cheetah MobileCMCM$197.59721.9%Buy
21VianetVNET$35.6578.2%Buy
Qihoo 360QIHI$132.1374%Outperform
SouFunSFUN$14.2149.7%Outperform
SINASINA$66.0047%Outperform
Phoenix New MediaFENG$13.8744%Outperform
LejuLEJU$18.9843.8%Outperform
Sources: S&P Capital IQ, USA TODAY research