BABA: Analyst Downgrade Cuts Price Target to $145 — But $433M Ant IPO Fallout Still Weighs

Court: S.D. New York

Case: 1:20-cv-09568

Alibaba BABA shares slid 1.6% on July 17 after Barclays slashed its price target from $180 to $145, citing tempered expectations. Despite a strong institutional backing and moderate buy consensus, the e-commerce giant remains under investor scrutiny as the aftermath of the Ant Group IPO debacle continues to cast a shadow over its long-term narrative.

📉 What We Know About Alibaba’s Stock Outlook

• Barclays lowered price target from $180 to $145 while keeping an overweight rating
• Trading volume dropped 68% below daily average
• Stock last traded at $115.16, down from previous close of $116.97
• Analyst targets revised downward:Benchmark: $176 (Buy)Bank of America: $135 (Buy)Arete: Downgraded to HoldMizuho: $160 (Outperform)Morgan Stanley: Maintains $180
• Average price target now sits at $150.80
• Dividend reduced to $0.95, yielding 0.8%
• Market cap: $276.22B | P/E ratio: 15.54 | Debt-to-equity: 0.19
• Institutional ownership: 13.47%Kingstone Capital, Goldman Sachs, Price T Rowe, UBS AM, and Norges Bank among largest holders

Despite fundamental strength, reduced growth sentiment and the lingering Ant Group overhang are tempering enthusiasm.

🧾 But a $433M Legal Hangover Still Casts a Shadow

Alibaba agreed to a $433.5 million settlement with investors who claimed the company failed to disclose regulatory risks around Ant Group’s canceled IPO and lending operations.

📆 Timeline Overview

• Nov 5, 2019: Regulators caution Alibaba on financial rule compliance
• Nov 2, 2020: Ant execs summoned by China’s central bank
• Nov 3, 2020: Ant’s IPO suspended; BABA drops 8%
• Dec 23–24, 2020: Antitrust probe into Alibaba announced; stock drops 13%
• Apr 22, 2022: Class-action lawsuit filed by investors

💼 Allegations Include

• Failing to disclose pending compliance issues with Ant Group
• Misleading investors about Ant’s IPO readiness
• Concealing structural risks in consumer lending

💰 Investor Update

• $433.5 million cash settlement finalized
• Case addresses losses tied to IPO suspension and regulatory probes
• Payouts expected within 8–12 months of final court approval

👉 You can check more information about it and file for a payout HERE.

As Alibaba weathers fluctuating analyst sentiment and adjusts its capital strategy, the Ant Group legal reckoning remains a reminder of how fast optimism can pivot under regulatory pressure.