Top Jefferies analyst Thomas Chong reiterated a Buy rating on Alibaba (BABA) stock with a price target of $230, calling the stock a “Top Pick for 2026.” The 5-star analyst said Alibaba’s growth remains strong, backed by rising demand for AI and cloud services and improving performance in e-commerce and quick commerce. The new target suggests about 32% upside from the current levels.
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Interestingly, Chong ranks No. 307 among more than 10,000 analysts on TipRanks. He has a success rate of 59%, with an average return per rating of 16.50% over a one-year period.
Why BABA Is a Top Pick
The analyst said Alibaba Cloud continues to grow quickly, driven by solid AI demand and the company’s “full-stack AI infrastructure.” He expects cloud revenue to rise about 30% year-over-year, driven by wider use of GPU chips, more AI training needs, and higher demand for custom data models across industries.
On the e-commerce side, Chong highlighted stronger synergies between core commerce and Quick Commerce (QC). He expects customer management revenue (CMR) to grow about 10% year-over-year, supported by higher traffic, cross-selling, and purchase frequency. He added that QC losses should peak in the September quarter, with better results expected by December.
Chong said Alibaba is still investing in AI-based apps such as Amap, DingTalk, and Quark. He noted that while these projects could lead to higher short-term losses, they are key to strengthening Alibaba’s products and supporting long-term growth in its digital ecosystem.
Overall, the analyst said that Alibaba remains one of Jefferies’ “maximum bullish” ideas for 2026, supported by clear growth in AI, cloud, and digital consumption.
Is Alibaba Stock a Good Buy Right Now?
Analysts remain bullish about Alibaba’s stock trajectory. With 19 Buy ratings and two Hold ratings, BABA stock commands a Strong Buy consensus rating on TipRanks. Also, the average Alibaba price target of $191.99 implies about 10.54% upside potential from current levels.
