Alibaba price target lowered to $124 from $126 at Citi

Citi analyst Alicia Yap lowered the firm’s price target on Alibaba to $124 from $126 and keeps a Buy rating on the shares ahead of the fiscal Q4 report. The company’s investment focus to drive growth through competitive low-price strategy that attracts consumer demand and purchase frequency might have led to reaccelerated order volume and merchandise volume growth, the analyst tells investors in a research note. However, the firm believes Alibaba’s adjusted EBITA likely will experience further pressure in the near to mid-term given its continued reinvestment in user experience improvement.