Alibaba (BABA) PT Raised to $159 at Mizuho

Mizuho analyst Jason Helfstein raised the price target on Alibaba (NYSE: BABA) to $159.00 (from $149.00) while maintaining a Outperform rating.

The analyst commented: "Although revenue and EBITA came in light due to divestitures and increased investment, the underlying trends for both CMR and Cloud are incrementally stronger driven by good execution and solid demand. The integrated commerce and on-demand offerings are driving more traffic and higher frequency, supporting better advertising yield immediately. In addition, 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."

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