Chinese e-commerce giant Alibaba (BABA) rose 12.9% after posting strong Q1 FY26 results on August 29. The company topped profit forecasts and showed solid progress in AI and cloud, even though revenue of 247.7 billion yuan ($34.6 billion) fell slightly short of the 252.9 billion yuan expected. Cloud revenue stood out, climbing 26% year-over-year to 33.4 billion yuan. Adjusted earnings per ADS came in at $2.06, above the consensus estimate of $1.98.
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Following the report, several Wall Street analysts raised their price targets, citing Alibaba’s growing cloud business and rising role in AI.
Analysts See More Upside and Big Potential in AI
After Alibaba’s June quarter results, several analysts have weighed in on Alibaba’s performance.
To begin with, Goldman Sachs analyst Ronald Keung raised his price target on Alibaba to $163 from $147 while keeping a Buy rating. Keung noted that Alibaba’s quick commerce unit will post bigger losses in the September quarter, but expects these losses to reduce by December as the company targets higher-quality users, cuts subsidies, and improves delivery efficiency.
The analyst raised his overall price target on the back of faster international e-commerce recovery and stronger growth in the cloud. He said Alibaba’s new focus is on becoming an “AI + everyday consumption app” and an “AI + Cloud hyperscaler.”
Similarly, JPMorgan analyst Alex Yao raised his price target on Alibaba to $170 from $140 while keeping an Overweight rating. Yao said Alibaba’s food delivery and quick commerce units are now large enough to run more efficiently, similar to Meituan, China’s leading food delivery company. He added that with more orders and riders, losses should narrow in the next few quarters, and Ele.me, Alibaba’s food delivery arm, could move into profit over time.
Also, Bernstein analyst Robin Zhu raised his price target on Alibaba to $160 from $145 while keeping an Outperform rating. Zhu pointed to strong Q1 results, noting that Alibaba now has 300 million monthly quick commerce customers, more than 2 million daily riders, 80 million daily orders, and 20% growth in Taobao’s daily users. He added that losses in Alibaba’s food delivery unit could be cut in half by October, making Q2 the peak quarter for spending.
Is Alibaba Stock a Good Buy Right Now?
Analysts remain bullish about Alibaba’s stock trajectory. With 12 Buy ratings and one Hold rating, BABA stock commands a Strong Buy consensus rating on TipRanks. Also, the average Alibaba price target of $152.63 implies about 13.06% upside potential from current levels.
