Alibaba (BABA) Stock Gets Price Target Reduction at Daiwa

NEW YORK (TheStreet) --Japanese broker Daiwa lowered its price target on Alibaba Group (BABA) to $103 per share from $1.05 per share, Barron's reports.

Daiwa is the latest in a string of firms that have reduced their price targets on the China-based online and mobile commerce and cloud computing services company.

Daiwa cited margin pressure from the heavy investment the company has made in its business are its reason for the price target drop.

"We continue to expect Alibaba's investment in content creation, traffic acquisition, and O2O service promotion to weigh on its EBITDA margin. On the other hand, such investment is vital to ensure user engagement and retention, in our view," Daiwa said in an analyst note, Barron's noted.

Shares of Alibaba are lower by 0.70% to $86.60 in early afternoon trading on Friday.

BABA Chart BABA data by YCharts

More from Markets

Stocks Rise Sharply, Facebook Ignites a Nasdaq Rally

Stocks Rise Sharply, Facebook Ignites a Nasdaq Rally

Jim Cramer: Visa Is a Technology Company That Masquerades as a Financial Company

Jim Cramer: Visa Is a Technology Company That Masquerades as a Financial Company

Jim Cramer: Chipotle Shares Are Probably Done Going Down

Jim Cramer: Chipotle Shares Are Probably Done Going Down

Jim Cramer: This Is a Sad Time for Southwest Airlines

Jim Cramer: This Is a Sad Time for Southwest Airlines

Jim Cramer Just Spoke to Larry Kudlow About the China Trade Negotiations

Jim Cramer Just Spoke to Larry Kudlow About the China Trade Negotiations