Alibaba, the Consumer Cyclical sector company, was revisited by a Wall Street analyst today. Analyst Joyce Ju from Bank of America Securities reiterated a Buy rating on the stock and has a $188.00 price target.
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Joyce Ju’s rating is based on Alibaba’s strong performance in several key areas. The company reported a notable increase in revenue for the second quarter of fiscal year 2026, with a 5% year-over-year growth, or 15% when excluding certain disposed assets. A significant factor in this growth is the acceleration of Alibaba’s cloud revenue, which saw a 34% increase year-over-year, driven by substantial growth in AI-related revenues and rising adoption of AI products by external customers.
Moreover, despite some challenges in the eCommerce sector, Alibaba’s customer management revenue grew by 10% year-over-year, and quick commerce revenues surged by 60%. Although there were some losses in quick commerce, management’s commitment to reducing these losses is on track. The company’s strategic focus on AI and improvements in unit economics are expected to support continued growth, justifying the Buy rating with a price objective of $188.
In another report released yesterday, Barclays also reiterated a Buy rating on the stock with a $195.00 price target.