Benchmark Lowers Alibaba (BABA) PT, Keeps Buy Rating

Alibaba Group Holding Limited (NYSE:BABA) is one of the 11 Best Foreign Stocks to Buy According to Hedge Funds. On May 16, Benchmark analyst Fawne Jiang reduced the price target for Alibaba Group Holding Limited (NYSE:BABA) from $190 to $176 but kept a “Buy” rating.

This decision came after Alibaba Group Holding Limited (NYSE:BABA) reported revenue for the fourth quarter of its fiscal year 2025, which did not meet expectations.

Benchmark Lowers Alibaba (BABA) PT, Keeps Buy Rating

An e-commerce platform displaying a wide range of products to customers online.

The main reasons for the shortfall were weaker results in the company’s AIDC division and outdated consensus estimates that did not take into account recent asset divestitures.

Even though overall revenue missed expectations, Jiang pointed out that Alibaba Group Holding Limited’s (NYSE:BABA) core commerce and cloud computing segments showed strong growth. The company’s customer management revenue (CMR) grew by 12% compared to last year, beating market estimates. This growth was supported by higher take rates and matched the general trend in Gross Merchandise Volume (GMV) across the industry.

Cloud revenue also grew faster, reaching the high teens, driven by strong demand for AI services.

Looking ahead, the analyst expects CMR to continue growing faster than GMV through the 2026 fiscal year, driven by sustained gains in take rates.

Alibaba Group Holding Limited (NYSE:BABA), or simply Alibaba, is a Chinese multinational technology company specializing in e-commerce, retail, digital media and entertainment, cloud, and technology.

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