Benchmark Analyst Lowers Alibaba PT to $176, Maintains Buy Rating

Benchmark analyst Fawne Jiang lowered Alibaba's (BABA) price target from $190 to $176 but maintained a "Buy" rating due to weaker AIDC division results and outdated consensus estimates. Despite missing revenue expectations, core commerce and cloud computing segments showed strong growth, with customer management revenue up 12% YoY and cloud revenue growing in the high teens. The analyst expects continued growth in CMR through 2026, driven by sustained gains in take rates.

Benchmark analyst Fawne Jiang recently reduced Alibaba Group Holding Limited's (NYSE: BABA) price target from $190 to $176, but maintained a "Buy" rating. This decision followed Alibaba's recent quarterly report, which missed revenue expectations due to weaker results in its AIDC division and outdated consensus estimates [2].

Despite the revenue miss, Alibaba's core commerce and cloud computing segments demonstrated strong growth. Customer management revenue (CMR) increased by 12% year-over-year (YoY), beating market estimates. Cloud revenue also grew at a faster pace, reaching the high teens, driven by strong demand for AI services [2].

Looking ahead, Jiang expects CMR to continue growing faster than Gross Merchandise Volume (GMV) through the 2026 fiscal year, driven by sustained gains in take rates. The analyst's optimism is reflected in the company's strategic initiatives, such as its expansion into instant commerce and AI services, which could drive long-term growth.

Alibaba's current valuation, with a Forward P/E ratio of 10.48 and a PEG ratio of 0.42, offers an attractive entry point for investors willing to hold the stock for the medium to long term. The company's recent underperformance presents an opportunity to buy into this beaten-down tech name at a discounted price [3].

References:

[1] https://finance.yahoo.com/news/why-alibaba-stock-looks-screaming-141239023.html
[2] https://finance.yahoo.com/news/benchmark-lowers-alibaba-baba-pt-043407811.html?.tsrc=rss
[3] https://finance.yahoo.com/news/alibaba-baba-rises-market-takes-214503989.html