Bank of America Reaffirms ’Buy’ on Alibaba Despite Price Target Cut
Alibaba Group Holding Ltd. (BABA) remains a top pick for Bank of America analyst Joyce Ju, even as she trimmed her price target to $188 from $200. The adjustment follows Q2 earnings that showed 5% revenue growth to 247.8 billion yuan ($34.8 billion), though earnings per share fell short of estimates.
Investors continue to reward the Chinese eCommerce giant’s turnaround story—shares have surged 89% year-to-date amid stabilizing Core commerce and cloud momentum. Alibaba’s increased investments in AI and quick commerce pressured cash flow, but Ju sees long-term potential in these growth engines.
Cloud computing emerged as the standout performer, with revenue jumping 34% to 39.8 billion yuan ($5.6 billion). This segment’s acceleration could offset near-term headwinds in other divisions.
