Alibaba Group (BABA) Stock Price Target Cut Today at JPMorgan
NEW YORK (TheStreet) -- Shares of Alibaba Group (BABA) - Get Report are down 0.54% to $85.28 in morning trading today as JPMorgan cut its price target to $109 from $117, while reiterating its "outperform" rating, saying to buy on weakness.
JPMorgan lowered its revenue and profit estimates for Alibaba by 4%-5% for 2016 and 7%-8% for 2017 on expectations the company's search and ad quality improvements will hurt near-term financials.
The firm's estimates, however, remain above consensus. JPMorgan recommends buying shares of Alibaba on weakness on the belief the company owns one of the top global Internet platforms.
The firm thinks the company's ecosystem changes should pay dividends in the long-term. It attributes the stock's 29% decline since the November 10, 2014 high to third quarter revenue missing expectations, monetization changes hurting near-term take rates, concerns around counterfeit products and the 180-day lock-up expiration.
"If you do want to play Alibaba, please buy Yahoo" The Street's Jim Cramer recently said on CNBC's Squawk on the Street.