JPMorgan analyst Alex Yao lowered the price target on Alibaba Group Holding (NYSE: BABA) to $180 from $210 and kept an Overweight rating on the shares. The price target implies an upside of 42.1%.
The analyst is "turning more cautious" on China's online consumption outlook and cut Alibaba's December quarter customer management revenue growth assumption to negative 2% year-over-year from positive 5%.
Yao forecasts the negative CMR growth will end in the June 2022 quarter, "admittedly with low visibility."
On the other hand, the analyst expects a further sequential step-up in strategic investment in China commerce in the December quarter, followed by a gradual loss narrowing starting from the March quarter.
Yao believes earnings revisions will be the most crucial share price driver of Alibaba in the next few quarters, besides policy stimulus.
The analyst thinks the stock will continue to be under pressure shortly, "despite low valuations."
Price Action: BABA shares traded higher by 2.94% at $130.35 in the market session on the last check Friday.
Latest Ratings for BABA
View More Analyst Ratings for BABA View the Latest Analyst Ratings
See more from Benzinga
Here's Why This Fund Manager Sees Buying Opportunity In Alibaba
Benchmark Remains Bullish On This E-Commerce Giant
© 2022 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.
