Fawne Jiang, an analyst from Benchmark Co., maintained the Buy rating on Alibaba (BABA – Research Report). The associated price target is $190.00.
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Fawne Jiang has given his Buy rating due to a combination of factors that highlight Alibaba’s strategic positioning and growth potential. Alibaba’s recent earnings have shown a strong reacceleration in its core ecommerce and cloud segments, alongside a return to profit growth for its TTG segment and a promising path to profitability for AIDC. The sustainability of these growth drivers is bolstered by increased take rates and rapid AI Cloud adoption, leading to an ambitious capital expenditure plan aimed at capitalizing on the transformative opportunities in the AI sector.
Moreover, Alibaba’s robust infrastructure capabilities and proprietary models position it as a leading player in China’s AI sector, with significant upside potential. Despite the stock’s recent rise, Jiang sees a structural rerating driven by upward earnings revisions and technological innovations. Potential macroeconomic improvements or positive developments in tariff issues could further enhance Alibaba’s growth prospects, making it a top play in the market with a price target raised to $190.
In another report released today, Barclays also maintained a Buy rating on the stock with a $180.00 price target.