Alibaba's (BABA) Price Target Trimmed at Pacific Crest

Pacific Crest maintained an Overweight rating on Alibaba (NYSE: BABA) but lowered its price target to price $94.00 (from $104.00). Analyst Cheng Cheng said he remains positive long-term despite recent headwinds.

"Disappointing FQ1 results and currency issues lead to lower estimates. While we continue to see positive developments longer term for Alibaba, multiple short-term headwinds prompt a lower price target," said Cheng.

"Despite disappointing results, we believe Alibaba's position as the online partner to enable omni-channel strategies for offline retailers as a positive to Tmall GMV growth, user experience, and distribution. Cloud computing revenue was a highlight in the quarter as well, and we view Alibaba's commitment and progress in cloud computing as a long-term positive for both revenue growth and ecosystem stickiness. Finally, mobile takerates were significantly better than we had expected and are now 84% of PC take-rates. We view this as positive for Alibaba's future as GMV and activity continue to shift toward mobile. We would categorize all of these positives as longer-term in nature," added the analyst.

For an analyst ratings summary and ratings history on Alibaba click here. For more ratings news on Alibaba click here.

Shares of Alibaba closed at $73.38 yesterday.

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