Analysts are Cutting Price Targets of These 5 Stocks

2. Alibaba Group Holding Limited (NYSE:BABA)

Number of Hedge Fund Holders: 146   

Alibaba Group Holding Limited (NYSE:BABA) is ranked second on our list of 15 stocks that analysts are cutting price targets of. The firm operates as a diversified technology firm and is headquartered in China. 

On September 29, investment advisory Bank of America reiterated a Buy rating on Alibaba Group Holding Limited (NYSE:BABA) stock but lowered the price target to $254 from $285, citing a broader ecommerce slowdown as one of the reasons behind the lower target. 

Out of the hedge funds being tracked by Insider Monkey, Washington-based investment firm Fisher Asset Management is a leading shareholder in Alibaba Group Holding Limited (NYSE:BABA) with 14 million shares worth more than $3.2 billion.

In its Q1 2021 investor letter, Polen Capital Management, an asset management firm, highlighted a few stocks and Alibaba Group Holding Limited (NYSE:BABA) was one of them. Here is what the fund said:

“Alibaba also detracted from performance as the company continues to remain under regulatory scrutiny from both the Chinese State Administration for Market Regulation on antitrust concerns and the U.S. Securities and Exchange Commission on ADR listing requirements. Despite the regulatory overhang, we believe that Alibaba’s competitive positioning and growth outlook remains intact, even if the company must pay fines or modify some business practices. We viewed the current valuation at <20x next twelve month’s earnings as a compelling opportunity to add to our position. Alibaba is the second largest position in the Portfolio.”