Analyst Joyce Ju from Bank of America Securities reiterated a Buy rating on Alibaba and increased the price target to $200.00 from $195.00.
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Joyce Ju has given her Buy rating due to a combination of factors that indicate strong future growth prospects for Alibaba. The company is expected to see continued acceleration in its cloud services, with revenue growth projected to increase significantly due to heightened demand for cloud and AI solutions. This positive outlook is supported by management’s recent comments and the company’s long-term capital expenditure plans.
Additionally, Alibaba’s eCommerce segment is anticipated to maintain solid growth, driven by improvements in customer management and increased traffic from Taobao’s instant commerce platform. Despite some short-term profitability challenges due to investments in quality control and AI applications, the long-term outlook remains positive. The upcoming Double 11 sales event and advancements in AI technology in the US are seen as near-term catalysts that could further enhance Alibaba’s market position and investor confidence.
In another report released yesterday, Jefferies also reiterated a Buy rating on the stock with a $230.00 price target.