Alibaba Group: Jefferies cuts target price to $150 from $153
July 2, 2025
Jefferies, a prominent financial institution, has recently lowered its price target for Alibaba Group Holding Limited (NYSE:BABA) from $156 to $153, while maintaining a "Buy" rating on the stock. This adjustment comes amidst increased investment in food delivery and logistics by Alibaba, which has seen a remarkable growth in daily orders, exceeding 60 million in late June [2].
Alibaba's recent AI advancements, including the launch of the Qwen VLo image generation model, have also been noted as a significant driver for the company's growth. However, analysts at Jefferies believe that certain AI stocks offer greater upside potential and carry less downside risk, suggesting that while Alibaba remains a strong investment, other AI stocks might be more attractive [2].
The move by Jefferies follows a series of institutional investments and analyst ratings that have shaped the market perception of Alibaba Group. In the first quarter, various funds and institutional investors, such as Alpha Cubed Investments LLC and BOCHK Asset Management Ltd., have acquired or increased their stakes in Alibaba, highlighting the continued interest in the company [1, 3].
Institutional investors currently own 13.47% of Alibaba Group's stock, underscoring the significant interest and confidence in the company's prospects. The stock has seen a mix of analyst ratings, with 14 analysts rating it as a "buy" and three rating it as a "hold," giving it a consensus rating of "Moderate Buy" with an average price target of $154.13 [1].
Despite the recent dividend cut, Alibaba Group continues to attract substantial investment and remains a key player in the global e-commerce and AI landscape. Investors should carefully consider the latest developments and analyst ratings when making investment decisions.
References:
[1] https://www.marketbeat.com/instant-alerts/filing-5271-shares-in-alibaba-group-holding-limited-nysebaba-bought-by-alpha-cubed-investments-llc-2025-07-08/
[2] https://finance.yahoo.com/news/jefferies-lowers-pt-alibaba-stock-145732077.html
[3] https://www.marketbeat.com/instant-alerts/filing-bochk-asset-management-ltd-purchases-shares-of-3700-alibaba-group-holding-limited-nysebaba-2025-07-07/
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