Morgan Stanley Cuts Its Alibaba Stock Price Target

2 months ago 37

Kamina Bashir

Sun, July 26, 2026 astatine 9:56 AM CDT 2 min read

Morgan Stanley kept Alibaba (BABA) banal arsenic a "top pick" up of late-August earnings. Analyst Gary Yu made the telephone implicit 2 weeks aft cutting his people to $180 from $190.

That people sits astir 60% supra wherever BABA shares closed connected Friday astatine $112.14. Thus, Wall Street is telling clients the banal is worthy acold much than buyers are presently consenting to pay.

Why the Target Cut Came First

Yu lowered his Alibaba people successful aboriginal July. He inactive kept an overweight standing connected the stock.

Other banks pivoted successful the aforesaid direction. HSBC chopped its people to $170 from $176 successful July. The slope inactive maintained its bargain rating.

Daiwa moved earlier, cutting to $175 from $200 connected June 24. The steadfast pointed to anemic income during China's 618 buying festival.

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What Yu Wants Investors to Watch

Yu framed the reiteration by pointing to Alibaba's unreality infrastructure, which helium described arsenic the largest successful China.

"We expect Alibaba, having the largest unreality infrastructure successful China, to triumph stock successful the existent evolutionary AI rhythm successful China," Yu said.

The slope besides cited currency generation, dividends, and stock buybacks arsenic support. Morgan Stanley noted the online regulatory situation appears to beryllium easing, with Alibaba positioned to benefit.

Yet, the bullish calls beryllium against a tally of atrocious news. The European Commission fined AliExpress 550 cardinal euros connected July 20 for breaching the Digital Services Act (DSA).

AliExpress called the good disproportionate and has until October 20 to record an enactment plan.