Chinese e-commerce giant Alibaba (BABA) is set to report Q2 FY26 earnings on Tuesday, November 25, with growing optimism from Wall Street analysts. One of them, top Mizuho analyst Wei Fang, just raised his price target to $195 from $159, implying a 27% upside from current levels. He maintained an Outperform rating on BABA stock, citing improving trends in commerce, steady progress in cloud, and better execution.
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Top Analyst Sees Signs of Improvement
Fang said recent checks show improvement in Alibaba’s core business. He noted that order activity and customer spending have picked up, helped by stronger engagement in food delivery and in-store services. He believes these trends suggest Alibaba is slowly gaining back momentum in China’s online retail market.
Fang also pointed to progress in the cloud unit. He said demand tied to AI use cases is rising, and Alibaba is seeing more interest from banks, developers, and enterprise clients. In his view, cloud growth may not be explosive yet, but he expects it to improve going forward.
He also highlighted Alibaba’s quick-commerce business, which focuses on fast delivery. The analyst said it has long-term potential if execution continues to improve, though it may take time before it becomes profitable.
Overall, Fang said Alibaba is showing signs of steady improvement. He noted that competition and rising costs remain risks, but he believes the outlook going into earnings looks better than it did earlier this year.
What Is the Price Target for BABA Stock?
Analysts remain bullish about Alibaba’s stock trajectory. With 19 Buy ratings and two Hold ratings, BABA stock commands a Strong Buy consensus rating on TipRanks. Also, the average Alibaba price target of $198.21 implies about 24.75% upside potential from current levels.
