Alibaba (BABA) Stock Gets Boost as Analysts See AI Cloud Growth Ahead

Alibaba Group Holding Limited (NYSE:BABA) is one of the AI Stocks Analysts Are Backing Right NowOn September 2, Mizuho analyst Jason Helfstein raised the price target on the stock to $159.00 (from $149.00) while maintaining an Outperform rating.

The rating affirmation follows Alibaba’s earnings report, characterized by light revenue and EBITA due to divestures and increased investments. However, commerce and cloud are doing better due to robust demand and execution.

“BABA’s cloud growth should accelerate in the next two quarters driven by strong Gen-AI demand, and we continue to believe BABA processes the best Cloud assets in China to capitalize on significant industry growth ahead. We view BABA’s fundamentals incrementally healthier post the print.”

“Looking ahead, we expect investment in Instant Shopping to remain elevated and management to continue to improve efficiency. We raise FY28 EBITDA estimate by 3% on better synergy outlook. Maintain Outperform and raise PT from $149 to $159, based on 9.5x our new FY28E EBITDA.”

Alibaba Group Holding Limited (NYSE:BABA) is an internet giant that offers e-commerce services in China and internationally.

While we acknowledge the risk and potential of BABA as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and doing so within a shorter time frame. If you are looking for an AI stock that is more promising than BABA and that has 10,000% upside potential, check out our report about this cheapest AI stock.

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