Mizuho Lowers Alibaba (BABA) Price Target, Keeps Outperform Rating

Alibaba Group Holding Limited (NYSE:BABA) is one of the 9 Best NYSE Stocks to Buy According to Hedge Funds. On July 24, Mizuho reduced its price target on Alibaba Group Holding Limited (NYSE:BABA) from $160 to $149 and kept an Outperform rating.

This decision to lower the price target reflects concerns about margin contraction because of tougher competition in local commerce, especially in food delivery. This increased competition is affecting all major commerce players.

Mizuho expects Alibaba Group Holding Limited (NYSE:BABA) to experience “meaningful margin contraction” in the second quarter compared to the first quarter. The competitive pressure affecting margins could continue through the second half of 2025 and into 2026.

Mizuho cut its forecast for Alibaba Group Holding Limited’s (NYSE:BABA) EBITDA in the June 2025 quarter from 55 billion RMB to 45 billion RMB. The firm also reduced the full-year 2027 EBITDA forecast to 231 billion RMB, factoring in the company’s 50 billion RMB subsidy program.

Additionally, the firm gave an estimate of 251 billion RMB for Alibaba Group Holding Limited’s (NYSE:BABA) 2028 EBITDA.

Alibaba Group Holding Limited (NYSE:BABA) plans to share its financial results for the quarter ended June 30, 2025, before the US market opens on August 29, 2025.

Alibaba Group Holding Limited (NYSE:BABA) is a Chinese multinational technology company focused on e-commerce, retail, AI, digital media and entertainment, cloud, and technology.

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Disclosure: None. This article is originally published at Insider Monkey.