Alibaba Group Holding Limited

(New York Stock Exchange)
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Bullish +65

BofA raises Alibaba target to USD 178 for Alibaba Group stock

Analyst upgrade Financial outlook AI-generated analysis

πŸ“ˆ Bank of America raised its price target for Alibaba Group (BABA) to USD 178.00 while maintaining a Buy rating.

πŸ’° BofA forecasts adjusted EBITA of CNY 30.00 billion for the September quarter, beating the CNY 26.00 billion consensus estimate.

☁️ Cloud revenue growth is expected to surge to 52.00%, up from 45.00% in the previous quarter.

πŸ“Š Adjusted EBITA margins are projected to expand from 11.60% to 12.90% for the September quarter.

πŸ€– Losses at Alibaba's artificial intelligence labs and applications are forecast to narrow from CNY 14.00 billion to CNY 11.00 billion.

πŸ›’ Quick-commerce losses are expected to decline slightly from CNY 9.80 billion to CNY 9.60 billion.

πŸ“… Alibaba is scheduled to report its September-quarter results between late October and mid-November 2026.

πŸ’΅ The company reported Q2 revenue of CNY 268.95 billion and net income of CNY 10.44 billion for the quarter ended June 30, 2026.

Bullish Signals
  • Bank of America raised its price target to USD 178.00 and maintained a Buy rating on Alibaba Group stock.
  • Analysts forecast adjusted EBITA of CNY 30.00 billion for the September quarter, significantly above the CNY 26.00 billion consensus estimate.
  • Cloud revenue growth is expected to accelerate to 52.00%, demonstrating strong expansion in the high-margin cloud intelligence segment.
  • Adjusted EBITA margins are projected to widen from 11.60% to 12.90%, indicating improved operational efficiency.
  • Losses at artificial intelligence labs and applications are forecast to narrow substantially from CNY 14.00 billion to CNY 11.00 billion.
Full Analysis
Bank of America raised its price target for Alibaba Group (BABA) to USD 178.00 on October 12, 2026, maintaining a Buy rating. The analyst firm forecasts adjusted EBITA of CNY 30.00 billion for the September quarter, which exceeds the consensus estimate of CNY 26.00 billion and represents growth from the previous quarter's CNY 27.00 billion. The forecast highlights significant expansion in Alibaba's cloud segment, with revenue growth projected to accelerate to 52.00% compared to 45.00% in the prior quarter. Additionally, adjusted EBITA margins are expected to widen from 11.60% to 12.90%, driven by improved profitability in core commerce and cloud operations. BofA also anticipates a reduction in losses for high-growth initiatives, with artificial intelligence labs narrowing losses from CNY 14.00 billion to CNY 11.00 billion and quick-commerce losses declining slightly to CNY 9.60 billion. These improvements are expected to support the overall earnings beat when results are reported between late October and mid-November 2026.