In a report released today, Fawne Jiang from Benchmark Co. maintained a Buy rating on Alibaba (BABA – Research Report), with a price target of $176.00.
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Fawne Jiang has given his Buy rating due to a combination of factors that highlight Alibaba’s strengthening core segments and growth potential. The company’s core commerce and cloud services have shown significant acceleration, with the Cloud segment experiencing high demand for AI services, resulting in a notable revenue increase. Despite some challenges in the AIDC segment and potential short-term margin volatility due to investments in instant commerce, the overall fundamentals remain robust.
In particular, the Taobao and Tmall Group (TTG) has demonstrated strong revenue growth, surpassing market expectations, and is expected to continue this trend through improved take rates and strategic investments. Additionally, Alibaba’s cloud services have benefited from widespread AI adoption across various sectors, positioning the company for sustained growth in this area. These positive developments in Alibaba’s core segments underpin Jiang’s confidence in maintaining a Buy rating, albeit with a slightly reduced price target to reflect revised earnings projections.
According to TipRanks, Jiang is a 5-star analyst with an average return of 16.4% and a 56.94% success rate. Jiang covers the Consumer Cyclical sector, focusing on stocks such as JD, Alibaba, and Mercadolibre.