The price target for China-based e-commerce giant Alibaba Group Holding Ltd.'s stock BABA, +2.50% was cut to $280 from $300 at Raymond James, due primarily to the recent weakness in the Chinese renminbi. The stock rose 1.8% in premarket trade Thursday, after shedding 5.7% this week through Wednesday. The new price target is 65% above Wednesday's closing price of $169.83. Analyst Aaron Kessler reiterated his strong buy rating on Alibaba, saying the stock's recent weakness--down about 20% since mid-June while the Nasdaq Composite COMP, +0.70% was little changed--was due primarily to macroeconomic concerns in China and currency moves, with the renminbi down about 9% versus the U.S. dollar since March-quarter results were reported. Other concerns include the tariffs and the trade spat with the U.S., which Kessler doesn't believe will have a material impact on results. Kessler said Alibaba remains his "top large cap pick" as the company is expected to be the biggest winner of continued strong e-commerce growth in China. The stock has lost 1.5% year to date through Wednesday, while the iShares China Large-Cap ETF FXI, +1.11% has shed 12% and the S&P 500 SPX, +0.67% has gained 5.4%.
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