BEIJING, Oct. 10 (SEE)- Alibaba Shares fell by about 5% on Wednesday, heading to record the lowest close in about 15 months with a reduction in the target price per share at $ 139.91.
Gregory Zhao, Wall Street Analyst at Barclays had cut the company’s target price from $ 225 to $ 210.
Zhao attributed the reason for the downgrade of the Beijing-based company to the headwinds facing China’s economy as long as the negative impact of lower margin investments in new retail initiatives.
Zhao also lowered his outlook on advertising revenue growth to 23% from 27% given China’s macroeconomic slowdown.
He predicted that EBITDA would be 23.4 billion yuan compared to a previous estimate of 26 billion yuan.
Separately, Cable Capital cut Alibaba’s target price to $ 215 from $ 220, citing lower core trade expectations.
The company’s share of e-services is heading towards the lowest closing since 2017.
Alibaba lost about 27 percent of its value over the past three months.