CMB International Securities analyst Saiyi He maintained a Buy rating on Alibaba today and set a price target of $158.80.
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Saiyi He has given his Buy rating due to a combination of factors that highlight Alibaba’s strong performance and growth potential. The company has shown solid progress in its cloud business, with a notable acceleration in cloud revenue growth, driven largely by increased adoption of AI-related products. This growth is expected to continue, as management remains committed to balancing revenue growth with profitability despite facing supply constraints.
Saiyi He also notes the early-stage success of Alibaba’s heavy investment in quick commerce, which has contributed to increased user engagement and monetization rates. The management’s confidence in sustaining customer management revenue growth, along with the potential synergies between quick commerce and Taobao, further supports the positive outlook. These factors, combined with an uplift in the target price reflecting a more positive business development outlook, underpin the Buy rating for Alibaba’s stock.
In another report released yesterday, UBS also maintained a Buy rating on the stock with a $162.00 price target.