Goldman Sachs Reiterates Conviction Buy Rating on Alibaba (BABA)

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.”

For an analyst ratings summary and ratings history on Alibaba click here. For more ratings news on Alibaba click here.

Shares of Alibaba closed at $145.81 yesterday.

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