CMB International Securities analyst Saiyi He maintained a Buy rating on Alibaba (BABA – Research Report) on February 21 and set a price target of $157.70.
Discover the Best Stocks and Maximize Your Portfolio:
- See what stocks are receiving strong buy ratings from top-rated analysts.
- Filter, analyze, and streamline your search for investment opportunities with TipRanks’ Stock Screener.
Saiyi He has given his Buy rating due to a combination of factors that indicate a positive outlook for Alibaba’s future performance. The company reported strong third-quarter results for fiscal year 2025, with total revenue surpassing expectations and demonstrating significant year-over-year growth. This was largely driven by the impressive performance of both the Taobao & Tmall Group and the Cloud Intelligence Group, which exceeded market expectations in adjusted EBITA.
The robust growth in Alibaba’s cloud revenue, fueled by an increase in demand for AI-related services, supports a promising future for the company’s cloud segment. Additionally, the Alibaba International Digital Commerce Group is expected to achieve profitability sooner than previously anticipated, contributing to a brighter overall earnings outlook. Consequently, these factors have led to an increase in the target price and a favorable valuation for Alibaba, reinforcing the Buy recommendation.
In another report released on February 21, Goldman Sachs also maintained a Buy rating on the stock with a $160.00 price target.