Shares of Hong Kong-listed Alibaba Group Holding Limited (HK:9988) are poised for over 50% growth, according to analysts. Year-to-date, Alibaba’s Hong Kong shares have gained around 11%, showing some signs of recovery. Moving ahead, analysts remain optimistic due to Alibaba’s strong operational performance, with its Cloud and E-commerce segments expected to drive continued growth. Overall, the stock has a Strong Buy rating on TipRanks with seven Buy recommendations.
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Alibaba is well-known for its dominance in the online marketplace. Over the years, it has expanded its portfolio to include cloud computing, digital entertainment, logistics, and financial services.
Analysts Remain Bullish on Alibaba
In November, Alibaba’s stock received four Buy recommendations following strong results in the second quarter of FY25.
DBS analyst Sachin Mittal predicts around 75% growth for Alibaba’s shares. He believes Alibaba’s earnings will hit their lowest point in the fiscal year ending March 2025. However, he expects a recovery thereafter, fueled by growth in its Cloud and E-commerce segments. Additionally, Mittal projects a steady 9% compound annual growth rate (CAGR) for Alibaba’s Cloud business from FY24 to FY27, driven by increasing demand for public cloud services and AI (artificial intelligence)-related products.
Likewise, analyst Alex Yao from J.P. Morgan praised the Q2 results and maintained his Buy rating. Yao highlighted that the operating metrics of domestic e-commerce, such as active users, new user growth, and GMV (gross merchandise volume), have shown improvement.
Meanwhile, analysts from Jefferies and Macquarie also confirmed their Buy ratings, predicting over 60% growth.
Insights from TipRanks’ Bulls Say, Bears Say
TipRanks’ “Bulls Say, Bears Say” tool provides insights into analysts’ perspectives on Alibaba’s stock.
Bulls are optimistic about Alibaba’s diversified model and growing cloud business. Analysts also favor its international platforms like AliExpress and Lazada as key growth drivers.
On the other hand, bears are wary of Alibaba’s financial outlook, with short-term earnings expected to be impacted by new investments. Additionally, fierce competition from companies like PDD Holdings (PDD) is squeezing its market share.
Is Alibaba Stock a Good Buy Now?
On TipRanks, 9988 stock has a Strong Buy consensus, based on seven Buy recommendations. At HK$128.25, Alibaba’s share price target implies a growth rate of 52.7% on the current trading price.
