JPMorgan raised the firm’s price target on Alibaba (BABA) to $170 from $125 and keeps an Overweight rating on the shares. The firm Alibaba’s Q4 results will change the stock narrative to a “strong and sustainable” earnings growth recovery, driven by e-commerce monetization in the near term and cloud and artificial intelligence profit generation in the mid to longer term. This narrative change will lead to a further valuation re-rating as investors gain more visibility on Alibaba’s core e-commerce profit outlook and cloud revenue outlook, the analyst tells investors in a research note.
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