Chinese e-commerce giant Alibaba (BABA) is on a roll after delivering impressive Q3 FY25 results on February 20, beating estimates on both revenue and profit. The stock jumped 5.7% to close at $143.75. In fact, over the past five days, BABA stock has jumped more than 14%. Wall Street analysts are showing confidence in Alibaba by raising their price targets while sticking to their Buy ratings.
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Analysts See More Upside and Big Potential in AI
After Alibaba’s Q3 results, several analysts have weighed in on Alibaba’s performance.
To begin with, Benchmark Co. analyst Fawne Jiang raised her price target to $190 while keeping a Buy rating, citing higher earnings and AI-driven growth. Jiang is particularly impressed by strong growth in Alibaba’s core e-commerce, cloud, and international units. She now expects FY26 revenue to rise 11% year-over-year and adjusted EBITDA to grow 28%. Further, with AI adoption speeding up and core businesses recovering, Jiang calls Alibaba a “leading player in China’s AI sector” with more room to grow.
Similarly, Jefferies bumped up its price target on Alibaba, sticking with a Buy rating after the company reported solid Q3 results. The firm sees AI and the cloud as key to Alibaba’s future growth. Jefferies highlighted that Taobao and Tmall Group (TTG) are gaining from more users and better service fee monetization.
Further, Joyce Ju of Bank of America Securities raised Alibaba’s price target to $150 from $117 while maintaining a Buy rating. The analyst remained encouraged by the company’s strong cloud revenue growth. Ju highlighted that AI-related products posted triple-digit revenue growth for the sixth straight quarter and continue to see strong demand heading into 2025.
Looking ahead, BofA anticipates that the growing demand for AI will drive Alibaba’s cloud intelligence revenue to expand by over 30% year-over-year in FY26.
Is Alibaba Stock a Good Buy Right Now?
Turning to Wall Street, analysts have a Strong Buy consensus rating on BABA stock based on eleven Buys and two Holds assigned in the past three months, as indicated by the graphic below. The average BABA stock price target is $151.75, implying an upside potential of 5.57%.
