Alibaba Group: Citigroup raises PT to $187 from $148, maintains Buy rating.

Alibaba Group: Citigroup raises PT to $187 from $148, maintains Buy rating.

Citigroup has raised its price target for Alibaba Group Holding Ltd. (NYSE: BABA) to $187 from $148, while maintaining a Buy rating. The upgrade comes amidst strong performance in Alibaba's cloud and AI-related revenues, which have seen triple-digit year-over-year growth for eight consecutive quarters [2].

Alibaba's cloud revenue growth accelerated to 26% year-over-year in the latest quarter, surpassing analyst expectations of 20-25% growth. The company's AI-related revenues now account for over 20% of its cloud revenues, highlighting the significant impact of AI on its operations [2].

Management has reiterated that cloud revenues will continue to accelerate in coming quarters, with Alibaba committed to a three-year capital expenditure plan of RMB380 billion. The firm has also reported a 10% year-over-year increase in revenue for the first quarter of 2025, alongside substantial investments in artificial intelligence and cloud infrastructure [2].

Despite mixed analyst views on Alibaba's recent earnings, the company's strategic initiatives and operational challenges are being closely monitored. Analysts have responded with varied price targets and ratings, reflecting the ongoing efforts to navigate these challenges [2].

References:
[1] https://www.cnn.com/markets/stocks/BABA
[2] https://www.investing.com/news/analyst-ratings/bofa-securities-raises-alibaba-stock-price-target-to-152-on-cloud-growth-93CH-4218064