Morgan Stanley and Jefferies Cut Price Targets on Alibaba (BABA)

Alibaba Group Holding Limited (NYSE:BABA) is one of the 10 Best NYSE Stocks to Buy According to Analysts. On January 8, Morgan Stanley cut its price target on Alibaba Group Holding Limited (NYSE:BABA) from $200 to $180 and maintained its Overweight rating. The firm pointed to a weaker outlook for the company’s core e-commerce business even when cloud momentum is still strong.

Morgan Stanley’s analyst, Gary Yu, said that “core e-comm businesses have started to worsen, due to weak consumption.” Yu also noted that this segment could be staying “under pressure in 1HF27 due to a high base.” Despite the lower price target, the research firm pointed out that momentum in the cloud reinforces Alibaba Group Holding Limited’s (NYSE:BABA) position as “China’s Best AI Enabler.”

On January 8, Jefferies also lowered its price target on Alibaba Group Holding Limited (NYSE:BABA) from $231 to $225 and kept its Buy rating. Jefferies still sees the company as its “top pick in 2026” because of opportunities in AI and cloud, as well as the company’s one-stop consumption platform.

Jefferies believes that the company made strong progress during the December quarter in its Quick Commerce business. The firm also noted that cloud revenue growth continues to accelerate year-over-year, supported by “solid AI demand.”

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.