Deutsche Bank Slashes Price Target for Alibaba Group Holding Ltd to Reflect Near-Term Headwinds

Deutsche Bank analyst Alan Hellawell came out today with a research note on Alibaba Group Holding Ltd (NYSE:BABA), reducing the price target to $98 (from $105), while maintaining a Buy rating. The new price target represents a potential upside of 19% from where the stock is currently trading.

Hellawell explained, “We have had several opportunities to meet with Alibaba mgmt over the past few weeks. While some proactive measures across the platforms could limit upside surprise shorter term, mgmt continues to evince a confident longerterm view; suggesting that mobile, category expansion and other factors will fuel growth going forward. Combined platform GMV should still meet or exceed market expectations of USD400b by CY15 and USD500bn by CY16. We tweak down earnings est. marginally to reflect NT headwinds while maintaining BUY on a still -intact broader thesis.”

According to, which measures analysts’ and bloggers’ success rate based on how their calls perform, analyst Alan Hellawell has a total average return of 43.1% and a 61.5% success rate. Hellawell has a -20.6% average return when recommending BABA, and is ranked #153 out of 3511 analysts.

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