UPDATE: Alibaba (BABA) PT Lowered to $254 at BofA Securities

BofA Securities analyst Eddie Leung lowered the price target on Alibaba (NYSE: BABA) to $254.00 (from $285.00) while maintaining a Buy rating after the company confirmed a recent slowdown in the ecommerce industry in August, but balanced the announcement by stating they expect a rebound in September and the promotional December quarter.

The analyst stated "Co. reiterates its commitment to an omni-channel strategy, incl. Taobao Deals and community groupbuy, and overseas markets particularly in ASEAN, amid the recent slowdown in China retail marketplaces. It sees continued user growth of Taobao Deals, also shown by Questmobile, and growing order volume of its groupbuy biz. On the other hand, we expect incremental margin pressure in the recent quarters due to the slowdown in the high-margin domestic marketplace biz and the ongoing investment."

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