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.

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Shares of Alibaba closed at $73.38 yesterday.