Jefferies raises Alibaba stock price target to $160 from $156

On Thursday, Jefferies analyst Thomas Chong increased the price target on Alibaba Group Holding Limited (NYSE:BABA) shares to $160 from the previous target of $156, while reiterating a Buy rating on the stock. According to InvestingPro data, the stock appears undervalued, with analyst targets ranging from $86 to $157. The adjustment follows Alibaba’s reported December quarter results, which showed that the company’s China Marketing Revenue (CMR), Cloud, and Taobao Tmall Genie (TTG) EBITA exceeded expectations.

Chong highlighted Alibaba’s competitive advantages, noting the integration of cloud and artificial intelligence models, which are supported by open source ecosystems and a wide range of application scenarios. The company’s strong financial position is evident in its impressive metrics, including a healthy gross profit margin of 38.2% and robust revenue of $137.1 billion in the last twelve months. According to the analyst, Alibaba’s commitment to capital expenditures is a strategic move to secure long-term growth.

The analyst also pointed out the significance of user growth for TTG and the benefits that CMR gains from the monetization of service fees and the Qianxi Zhetai (QZT) platform. Chong described the results across different segments of Alibaba’s business as impressive, reinforcing the rationale behind maintaining a Buy rating for the company’s stock.

Alibaba’s focus on expanding its technological capabilities and user base, as well as monetizing its services effectively, appears to be paying off, as reflected in the positive assessment from Jefferies. The company’s strategic investment in key areas of its operation seems poised to support its growth trajectory moving forward.

In other recent news, Alibaba’s upcoming earnings report is drawing significant attention from investors. BofA Securities has updated its outlook on Alibaba, raising the price target to $117 and maintaining a Buy rating. The firm projects Alibaba’s revenue for the fiscal third quarter of 2025 to be RMB 283.5 billion, a 9% increase year-over-year, with core Taobao Tmall revenue expected to rise by 7%. Jefferies has also increased its price target for Alibaba to $150, attributing this to an optimistic view of Alibaba Cloud’s performance and the demand for AI in the December quarter. Furthermore, Baird analyst Colin Sebastian has raised Alibaba’s price target to $125, citing strong technological capabilities and potential growth in cloud services.

JPMorgan has reiterated its Overweight rating and $125 price target, emphasizing Alibaba’s strategic positioning in cloud computing and AI innovations. The firm’s analysts view Alibaba as a preferred stock within the China internet space, highlighting potential positive revisions to cloud revenue and profit estimates. Meanwhile, Alibaba’s collaboration with Apple (NASDAQ:AAPL) in developing AI features for the Chinese market has been noted by BofA Securities, which maintained a Buy rating for Apple, underscoring the strategic nature of this partnership. These developments reflect Alibaba’s ongoing efforts to expand its technological capabilities and strengthen its market position.

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