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On Monday, Barclays (LON:BARC) reiterated its Overweight rating on Alibaba Group Holding Limited (NYSE:BABA) stock, maintaining a $180.00 price target. Currently trading at $107.73, Alibaba’s stock is considered undervalued according to InvestingPro analysis, with analyst targets ranging from $85.35 to $193.43. The firm’s analyst highlighted the continuous acceleration of the company’s cloud business as a significant factor. Alibaba’s cloud segment is not just expected to grow throughout March but is also projected to maintain this upward trend for the remainder of the year.
According to Barclays, the stability of cloud margins is likely, given that Alibaba’s current focus for its cloud division is to enhance customer adoption of Artificial Intelligence (AI) during what is described as the industry’s "land grab" phase. As China’s AI industry evolves from large language model (LLM) training to inferencing and subsequently to edge AI, Alibaba is poised to benefit early on due to its status as the largest AI infrastructure provider in the country. With a market capitalization of $244.8 billion and revenue growth of 5.85% in the last twelve months, Alibaba demonstrates solid fundamentals.
Barclays noted that Alibaba’s cloud business generates approximately $20 billion in revenue and $2 billion in EBITA annually, with growth rates accelerating. The firm believes that the value of Alibaba’s cloud division is not yet fully reflected in its current share price. InvestingPro data shows the company maintains a strong financial health score of "GOOD" with particularly high marks in profitability and cash flow metrics.
The analyst’s commentary underscores the importance of Alibaba’s strategic positioning within the burgeoning AI sector in China. With the company’s significant role in infrastructure provision, it stands to gain from the industry’s rapid expansion and technological advancements.
Alibaba’s stock price and market performance will continue to be watched closely by investors as the company capitalizes on the growth opportunities within the cloud and AI markets. The reaffirmation of the Overweight rating and price target by Barclays serves as an indicator of the firm’s confidence in Alibaba’s business strategy and potential for future growth.
In other recent news, Alibaba Group Holding Limited has been the focus of several significant developments. Mizuho (NYSE:MFG) Securities raised its price target for Alibaba to $170, maintaining an Outperform rating due to the company’s advancements in artificial intelligence (AI) and the potential for increased revenue growth. This optimism is echoed by Citi, which reiterated a Buy rating with a $170 price target, highlighting Alibaba’s strategic partnerships and AI initiatives as key drivers. Alibaba also provided an update on its share repurchase program, confirming ongoing buybacks as a means to return value to shareholders, though specific details were not disclosed. This move is generally seen as a positive indicator of the company’s confidence in its long-term growth prospects.
Furthermore, Alibaba’s AI efforts were spotlighted at the AI Dynamic Conference 2025, where the company’s commitment to developing AI applications was emphasized. Citi’s analyst Alicia Yap reaffirmed a Buy rating with a $169 target, citing these AI advancements as promising for the company’s future. Mizuho’s analysis also noted expectations for Alibaba’s cloud revenue growth to increase, reflecting a growing confidence in the company’s product roadmap. These recent updates suggest a continued focus on AI and strategic growth initiatives, with analysts maintaining a positive outlook on Alibaba’s trajectory.
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