Alibaba (BABA) PT Lowered to $176 at Benchmark

Benchmark analyst Fawne Jiang lowered the price target on Alibaba (NYSE: BABA) to $176.00 (from $190.00) while maintaining a Buy rating.

The analyst commented, "BABA missed F4Q25 revenue expectations due to softer AIDC performance and outdated consensus estimates that didn’t account for recent asset divestitures. Stripping out the noise, core commerce and Cloud showed strong acceleration. CMR grew 12% y/y, well ahead of consensus, driven by improved take rates and in line with industry GMV trends. Cloud revenue accelerated to high teens, fueled by strong demand for AI services. Looking ahead, we expect CMR to continue outpacing GMV growth through FY26, supported by sustained take rate gains, and cloud to maintain momentum with new customer onboarding and cross-selling. AIDC growth may moderate amid evolving global trade dynamics, while ele.me ramps investment in food delivery and instant commerce in partnership with TTG - both to defend against JD and offensively drive engagement via Taobao app integration. For FY26, we have raised revenue projections for CMR and TTG but trimmed group revenue estimates due to AIDC resets and potential ele.me headwinds. Given the likely ramp-up in instant commerce investments, we have lowered our FY26 profitability forecast and flagged potential near-term margin volatility. Bottom line: we see strengthening fundamentals in core segments (TTG and Cloud), maintain our Buy rating, and lower our PT to $176 to reflect revised earnings."

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