Benzinga | Dec 23, 2021 05:20AM EST

Read Why Daiwa Reduced Alibaba Price Target By 13%

* Daiwa analyst John Choi lowered the price target on Alibaba Group Holding Ltd (NYSE:BABA) to $170 from $195 and reiterated a Buy. The new price target implies a 44.3% upside.

* Choi said rising competition in e-commerce is a key risk factor for Alibaba in China and abroad.

* Related Content: China Regulators Suspend Alibaba Cloud Partnership; CLSA Remains Bullish On Alibaba

* This rising competition uncertainty over user retention over the long run and investor concerns regarding Alibaba's cash burn in new businesses are likely to persist despite better financial disclosure, Choi said.

* Alibaba is an online and mobile commerce company. It operates China's online marketplaces, including Taobao (consumer-to-consumer) and Tmall (business-to-consumer).

* Price Action: BABA shares traded lower by 0.86% at $116.80 in the premarket session on the last check Thursday.