NEW YORK (TheStreet) -- Alibaba Group Holding (BABA) stock is down 0.6% to $82.75 in early afternoon Wednesday after Oppenheimer lowered its price target to $105 from $112, while maintaining its "outperform" rating.
"We stay bullish on Alibaba's long-term growth potential yet adjust down our estimates based on recent business updates," analysts said.
Following the SAIC report, Alibaba has stepped up measures in cracking down on counterfeit products and strengthening controls, signaling some near-term adjustments in gross merchandise value (GMV) growth, analysts said.
In addition, the continued strong demand for long-tail keywords, the ongoing mix shift to mobile, and the suspension of online lottery sales will also likely hurt blended take rate in the coming quarters, Oppenheimer noted.
"We stay confident over the long-term, as we believe tighter control should make Alibaba more immune to potential risk (product quality and regulation-related) and ensure healthier growth," analysts said.
Analysts lowered their fiscal year 2015 and 2016 earnings to $2.19 and $2.74 per share, from $2.22 and $2.86 per share, respectively. They also lowered their 2015 and 2016 revenue estimates to $12.1 billion and $16.1 billion, from $12.3 billion and $16.3 billion, respectively.