Morgan Stanley kept Alibaba (BABA) stock as a “top pick” ahead of late-August earnings. Analyst Gary Yu made the call over two weeks after cutting his target to $180 from $190.

That target sits roughly 60% above where BABA shares closed on Friday at $112.14. Thus, Wall Street is telling clients the stock is worth far more than buyers are currently willing to pay.

Why the Target Cut Came First

Yu lowered his Alibaba target in early July. He still kept an overweight rating on the stock.

Other banks pivoted in the same direction. HSBC cut its target to $170 from $176 in July. The bank still maintained its buy rating.

Daiwa moved earlier, cutting to $175 from $200 on June 24. The firm pointed to weak sales during China’s 618 shopping…