Alibaba Group Holding (BABA) stock has risen 2.7% over the past week, fallen 8.4% over the past month, and gained 21.6% over the past year. Wall Street’s analysts are strongly bullish, forecasting further upside for BABA over the next twelve months, with an average price target of $185.25 versus the last close of $125.32.
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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 strong upside from current levels. Yu is a lower-ranked analyst, standing at 9,293 out of 12,068, with a 43.55% success rate and an average return of -1.7% per rating.
Yu’s report frames Alibaba as a top pick, driven by accelerating growth in its Alicloud business and ongoing investments in AI, especially Qwen applications. He expects Alicloud revenue to grow more than 40% year over year, accelerating to 45% in fiscal 2027, helped by recent cloud price hikes and longer-term demand for MaaS offerings.
Core e-commerce performance is stabilizing, with CMR growth reaccelerating to 7% on a like-for-like basis and core EBITA (excluding the QC segment) expected to stay largely flat year over year. Meanwhile, management plans to halve QC segment losses in fiscal 2027 versus 2026, and again in fiscal 2028, targeting profitability by fiscal 2029.
Yu notes that All Others losses are set to increase due to heavy Qwen promotional spending and rising model-training costs, prompting a cut to adjusted EBITA forecasts for the next two fiscal years. Even so, Morgan Stanley maintains its $180 price target, seeing cloud growth and narrowing QC losses as key catalysts for the stock. Never miss a stock rating. Find all the latest ratings on TipRanks’ Top Wall Street Analysts page.