Alibaba Buys Dufry Stake
Source: Getty Images

Alibaba Set to Buy a 10 Percent Stake in Dufry

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Oct. 5 2020, Published 7:32 a.m. ET

On Oct. 5, Alibaba Group announced it has agreed to buy a 9.99 percent stake in Dufry AG. Dufry has agreed with Alibaba to create a joint venture in China, while Alibaba plans to invest in Dufry. This arrangement will provide Dufry with a lifeline as the COVID-19 pandemic hammers its business.

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Alibaba Buys Dufry Stake
Source: iStock

What's the latest Alibaba news?

Alibaba and Dufry have agreed to embark on a strategic joint venture in China. The partnership will bring together Dufry’s global travel retail expertise and Alibaba’s leadership in Chinese consumer retail and digital transformation. Dufry said Alibaba is planning to invest up to 250 million Swiss francs.

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According to LiveMint, “Dufry said Monday it’s proposing a capital increase that will raise up to 700 million Swiss francs ($763 million), and Alibaba will participate. Advent International Corp., a private equity company, also plans to invest as much as 455 million francs.” Dufry said it will use the proceeds from the sale to buy out its Hudson Ltd U.S. unit.

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What is Dufry?

Dufry, based in Basel, Switzerland, was started in 1865. The company operates duty-paid and duty-free shops and convenience stores in airports, railway stations, cruise ships, seaports, and central tourist areas. The company employs about 36,000 people and is active in 65 countries.

What is Dufry’s stock price today?

Dufry stock is listed on the Swiss stock exchange under stock code "DUFN." At 6:40 a.m. ET today, Dufry stock was up about 17.5 percent at 32.90 francs. The stock has risen by 12.5 percent in the last five days and has fallen by 59.3 percent in the last year.

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Dufry stock is trading 67.0 percent below its 52-week high of 99.60 francs and 69.5 percent above its 52-week low of 19.40 francs. So far, the stock has fallen 65.7 percent in 2020. 

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What is Alibaba’s stock price today?

Alibaba stock is listed on the NYSE under the ticker symbol "BABA." The stock was up about 0.8 percent at $290.59 in premarket trading today as of this article's writing. The stock fell 0.7 percent on Oct. 2 and closed at $288.17 with a market capitalization of $769.7 billion. Alibaba stock has risen by 6.3 percent in the last five days and 69.2 percent in the last year.

Alibaba stock is trading 3.6 percent below its 52-week high of $299 and 78.2 percent above its 52-week low of $161.68. Year-to-date, the stock had risen by 35.9 percent as of Oct. 2. 

Is Alibaba a good stock to buy?

Currently, analysts' stock price forecast for Alibaba is $312.74, which suggests an 8.5 percent upside. Their highest target price of $402.90 implies a 39.8 percent upside, while the lowest target price of $220.95 suggests a 23.3 percent downside. Among the 48 Wall Street analysts tracking Alibaba, 47 recommend "buy" and one recommends "hold." None of the analysts recommend selling the stock.

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