Morgan Stanley Cuts Alibaba Price Target, Still Sees 60% Upside
Morgan Stanley has kept Alibaba as its top pick despite cutting its price target to $180 from $190, implying a roughly 60% upside from Friday's close of $112.14.
The bank's analyst, Gary Yu, made the call two weeks after lowering his target, and other banks such as HSBC and Daiwa have also cut their targets while maintaining buy ratings.
The European Commission fined AliExpress €550 million on July 20 for breaching the Digital Services Act, but Alibaba shares have gained about 18% over the past month and are expected to test whether the cloud growth can drive AI and broader enterprise adoption, including potential blockchain and DeFi infrastructure use cases.
Yu framed the reiteration by pointing to Alibaba's cloud infrastructure, which he described as the largest in China, saying 'We expect Alibaba, having the largest cloud infrastructure in China, to win share in the current evolutionary AI cycle in China.'