Alibaba Stock (BABA) Downgraded, Price Target Raised In Mixed Analyst Note

Alibaba's stock (NYSE:BABA) is having a mixed trading day today, down 1.17% as one analyst raised their price target whilst simultaneously cutting the rating on BABA.

The latest analyst action saw Freedom Capital downgrade Alibaba to a “Hold” rating from “Buy,” while simultaneously raising the price target to $180 from $140. This adjustment highlights the conflicting sentiments surrounding Alibaba. While the cloud segment continues to exhibit rapid expansion, the analyst notes that this growth is accompanied by significantly increased capital expenditures, with an uncertain payback period. The retail business, while showing growth, relies heavily on advertising spending and is not growing as quickly as some e-commerce competitors.

This downgrade aligns with a broader trend of revised analyst perspectives on Alibaba. Arete Research also downgraded the stock to “Neutral” on December 11,, setting a price target of $172.00, indicating a more tempered expectation for near-term gains. Similarly, US Tiger Securities downgraded Alibaba from “Buy” to “Hold” on September 25, 2025, raising the price target to $180 from $145, citing the stock's substantial year-to-date rally of 111.57% which may have already priced in much of the upside from developments such as the Qwen3-Max language model and AI investments.

Not all analyst actions reflect pessimism. JP Morgan adjusted its price target downward slightly on October 9, 2025, from $245 to $240, maintaining an “Overweight” rating, suggesting a nuanced valuation perspective. Bernstein also raised its price target to $200 from $167 on October 10, 2025, maintaining an “Outperform” rating, emphasizing Alibaba’s artificial intelligence capabilities and cloud revenue potential.

Price Targets

The mixed analyst sentiment, coupled with the stock's recent price action, suggests that the markets are carefully weighing Alibaba's growth opportunities in a competitive market.  With BABA having 80% in gains under it's belt through the past 12 months, some pause for thought can be expected into the next set of financials.