Alibaba (BABA) stock received a Buy rating from Citi analyst Alicia Yap, citing the recent strategic partnership of China’s Manus with the tech giant’s Tongyi Qwen team. Yap stated that Alibaba’s Tongyi-Manus partnership marks a significant step forward in China’s AI development. Yap’s price target of $170 implies a growth rate of 23% from current levels.
In context, Manus, the first AI Agent product from Chinese startup Monica, formed a strategic partnership with Alibaba’s Tongyi Qwen team earlier this week.
Citi Stays Bullish on BABA Stock
Citi highlighted that the collaboration will enhance the integration of general AI agents with large language models (LLMs). With Alibaba Cloud’s infrastructure powered by Tongyi models, Manus can boost its development efficiency with stronger computing capabilities. Additionally, the partnership will expand AI applications, particularly for Chinese users, as Manus primarily operates in English.
In another AI-driven move, Alibaba recently revealed an upgrade to its New Quark applications, introducing an all-in-one search bar to enhance user experience. This innovation reflects Alibaba’s ongoing efforts to push AI adoption and commercialize its technology.
Yap views these advancements positively, as they could bring AI applications into a new phase of widespread use while unlocking potential monetization opportunities for Alibaba’s AI initiatives.
Insights from TipRanks’ Bulls Say, Bears Say
TipRanks’ “Bulls Say, Bears Say” tool provides insights into analysts’ perspectives on Alibaba’s stock.
Beyond AI adoption and cloud expansion, bullish analysts point to Alibaba’s ongoing share buyback program as a key positive. The company has authorized $20.7 billion in repurchases through March 2027, that could support its stock price and boost shareholder value.
On the other hand, cautious analysts highlight challenges for Alibaba, including concerns about maintaining its e-commerce market share and potential pressure on profit margins.
Is Alibaba Stock a Buy Now?
On TipRanks, BABA stock has a Strong Buy consensus rating based on 16 Buys assigned in the last three months. At $165.61, the Alibaba share price target implies a growth rate of 19.7% on the current trading price.
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