Alibaba Gets Rare Wall Street Downgrade as Rival Pulls Ahead

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Brokers still remain largely bullish overall on Alibaba, whose ADRs have 44 buy ratings and eight recommendations at the equivalent of hold. Photo: Bloomberg

(Bloomberg) — Alibaba Group Holding Ltd. received a rare downgrade from Wall Street on the same day it lost its crown as China’s most valuable e-commerce firm to one of its main rivals.

Morgan Stanley cut its rating on Alibaba’s American depositary receipts (ADRs) to equal-weight from overweight, lowering its price target to $90 from $110. That’s the first downgrade on the company’s U.S.-listed shares since late June, according to data compiled by Bloomberg.