Major banks are slashing their expectations for the world's biggest e-commerce company ahead of Wednesday's lockup expiration, citing near-term challenges to Alibaba's growth outlook.
Barclays was the third major bank in the past week to cut its price target and earnings estimates for the e-commerce giant. In a note on Tuesday, analysts lowered their 12-month price target to $100 from $107, and slashed full-year (FY) 2015 and 2016 revenue estimates by 0.6 and 2.6 percent, respectively.
"We will watch closely for any signs of potential further slowdown in revenues and earnings growth that might result from the rising competitive threat on market share stability," Barclays said.
Last week, Deutsche Bank and Credit Suisse announced similar decisions. The former cut its price target to $98 from $105.10 on Thursday, while the Swiss bank lowered its price target to $112 from $113 and projected 2 and 7.1 percent declines in 2015 and 2016 earnings, respectively.
To be sure, all three banks still have "buy" calls on Alibaba but cite issues like counterfeit merchants, management changes at Tmall and China's suspension of online lottery sales as reasons for their lowered price targets and earnings estimates.