Alibaba (BABA) stock has fallen 3.2% over the past week and 9.7% over the past month, but it is still up 22.5% over the last 12 months. Wall Street’s analysts are strongly bullish, forecasting a move toward an average 12‑month price target of $187.05, well above the recent close of $119.72.
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Analyst Gary Yu of Morgan Stanley reiterated a Buy rating on BABA on April 8, 2026, with a price target of $180, implying roughly 50% upside from current levels. Despite a modest track record, with a ranking of 9,293 out of 12,068 analysts, a 43.55% success rate and an average return of -1.7% per rating, Yu still names Alibaba as his top pick.
Yu argues that cloud growth is the key catalyst, with Alicloud revenue expected to grow more than 40% year over year and potentially accelerate to 45% in fiscal 2027. Recent price hikes in cloud services and the rise of MaaS, which he expects will drive more than half of cloud revenue over time, support this bullish view.
The analyst also points to a recovery in Alibaba’s core commerce business, with customer management revenue growth reaccelerating to 7% on a like‑for‑like basis in the latest quarter. While losses in its quick commerce and “All Others” segments remain heavy and even rising due to AI and Qwen model investments, management aims to halve quick commerce losses in fiscal 2027 and again in fiscal 2028.
Yu slightly cut his adjusted EBITA estimates to reflect higher spending on AI, yet maintained his $180 price target, which implies Alibaba could trade at 23 times fiscal 2028 earnings versus about 16 times today. Never miss a stock rating. Find all the latest ratings on TipRanks’ Top Wall Street Analysts page.