Goldman Sachs analyst Ronald Keung reiterated a Conviction Buy rating and $186.00 price target on Alibaba (NYSE: BABA)

The analyst comments: “We are encouraged by Alibaba’s constructive AI/cloud outlook despite mixed headline results (see our First Take), with positive inflections across 1) further cloud revenue acceleration (+38%/+40% yoy overall/external in March quarter), where the company expects AI-related products to scale toward >50% of external cloud revenue over the next year (from 30% in March 2026 quarter), 2) cloud margin expansion and fast-scaling of MaaS monetization (targeting ARR of Rmb10bn/US$1.5bn for June quarter & Rmb30bn by year-end), supported by price hikes and mix shift to higher-margin MaaS business & in-house T-Head chips ramp-up, 3) higher capex spending ahead, given high utilization and strong net cash balance sheet, and 4) quick commerce profit turnaround target on track over FY27-29E, with unit economics to reach positive for certain periods in FY27E.”

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Shares of Alibaba closed at $145.81 yesterday.