JPMorgan Increases Its Price Target for Alibaba Group Holding (BABA), Reiterates its Overweight Rating

Alibaba Group Holding (NYSE:BABA) is one of the 13 Safest Stocks to Invest in Now, supported by hedge fund interest and significant return on equity.

JPMorgan Increases Its Price Target for Alibaba Group Holding (BABA), Reiterates its Overweight Rating

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Reiterating its Overweight rating, JPMorgan increased its price target for Alibaba Group Holding (NYSE:BABA) from $21.23 to $30.85 on October 2. The company highlighted management’s optimistic forecast on food delivery and speedy commerce, as well as better-than-expected cloud revenue growth in Q2 fiscal 2025.

Moreover, in light of growing confidence in general AI monetization, analysts raised adjusted EBITA projections for China’s commerce operations by 2% / 3% and upgraded fiscal 2027/2028 Alibaba Group Holding (NYSE:BABA) revenue estimates by 2% / 6%.

Furthermore, after the announcement, Hong Kong trading saw a 4% increase in shares. On the first day of China’s extended National Day holiday, Alibaba Group Holding (NYSE:BABA)’s Amap app broke the previous record with 360 million daily active users, according to Reuters. This highlights the company’s foray into lifestyle services and competition with Meituan. The milestone demonstrates BABA’s overarching plan to use AI-powered consumer platforms in addition to expanding its cloud and e-commerce companies.

Global e-commerce, cloud computing, digital media, and artificial intelligence services are the areas of expertise for Alibaba Group Holding (NYSE:BABA), a Chinese global technology company. It is one of the Safest Stocks To Buy.

While we acknowledge the potential of BABA to grow, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and have limited downside risk. If you are looking for an AI stock that is more promising than BABA and that has 100x upside potential, check out our report about this cheapest AI stock.

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