Alibaba (BABA – Research Report), the Consumer Cyclical sector company, was revisited by a Wall Street analyst today. Analyst Saiyi He from CMB International Securities maintained a Buy rating on the stock and has a $157.00 price target.
Saiyi He has given his Buy rating due to a combination of factors including Alibaba’s expected revenue growth and profitability in its core e-commerce business. The company is projected to maintain solid growth in customer management revenue, driven by increased gross merchandise value and a higher monetization rate, particularly through technology service fees and the penetration of Quanzhantui. Additionally, Alibaba’s cloud business is anticipated to experience accelerated year-over-year revenue growth, supported by strong public cloud performance and contributions from AI cloud services.
Furthermore, Alibaba’s non-core businesses are on a path to profitability within the next couple of years, and the AIDC segment is expected to achieve its first profitable quarter in FY26. The company is also seen as a key player in the AI era, potentially benefiting from consumption stimulus policies. Moreover, Alibaba’s shareholder returns remain robust, with significant share repurchases and an expected annual dividend announcement, reinforcing the positive outlook for investors.
In another report released on April 8, Bank of America Securities also reiterated a Buy rating on the stock with a $146.00 price target.