03-07-2025
Alibaba Stock (BABA): Top Analyst Trims Price Target but Stays Bullish on Growth
Chinese e-commerce giant Alibaba (BABA) stock has risen over 54% in the past year, easily outpacing the S&P 500's (SPX) gain of nearly 13%. Wall Street remains optimistic, with analysts projecting more than 44% upside from current levels. Against this positive backdrop, Jefferies' Top analyst Thomas Chong has slightly lowered his price target on Alibaba, citing near-term pressure from the company's rising investment in logistics and fast delivery.
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However, Chong sees these efforts as strategic moves to help Alibaba stay ahead in China's fast-evolving digital market. He maintained a Buy rating, signaling continued confidence in the company's long-term growth potential.
Chong's Views on Alibaba
Chong cut his price target on BABA stock to $153 from $156 per share, pointing to Alibaba's growing spending on local services, mainly in food delivery. Jefferies said the company is putting more money into Eleme and Taobao Instant Commerce, two services helping Alibaba grow in China's competitive on-demand market.
However, this investment already seems to be paying off. In late June, these platforms handled over 60 million orders per day, nearly twice as many as a year ago. Jefferies said this sharp rise in activity could help Alibaba bring in more users and keep them active, especially in smaller cities where the company is pushing to grow.
Chong also said Alibaba is working to build a one-stop app, a growing trend among major Chinese tech firms. By offering shopping, food, travel, and entertainment in one place, Alibaba hopes to raise daily use and keep people on its platform longer. While this needs more spending now, the goal is to add long-term value through stronger user retention and deeper engagement.
Is Alibaba Stock a Good Buy Right Now?
Analysts remain highly bullish about Alibaba's stock trajectory. With 12 unanimous Buy ratings, BABA stock commands a Strong Buy consensus rating on TipRanks. Also, the average Alibaba price target of $166 implies about 47% upside potential from current levels.
