Jefferies raises Alibaba target to USD 192 for Alibaba Group stock
π Jefferies raised its price target for Alibaba to USD 192.00 while retaining its Buy rating.
π° June-quarter revenue reached USD 39.64 billion, up 9.00 percent year over year.
βοΈ External cloud revenue surged 45.00 percent in the June quarter, highlighting a key growth driver.
π Net income fell 75.00 percent to USD 1.54 billion due to increased infrastructure spending.
πΈ Alibaba completed an HKD 80 billion share placement to fund AI and cloud infrastructure projects.
π The stock trades at a P/E ratio of 24.98 with a market cap of USD 272.8 billion.
π Shares are trading 38.90 percent below their 52-week high of USD 182.50.
Bullish Signals
- Jefferies raised its price target to USD 192.00 and maintained a Buy rating, signaling confidence in the company's long-term prospects.
- Revenue grew 9.00 percent year over year to USD 39.64 billion in the June quarter, demonstrating resilient top-line performance.
- External cloud revenue increased dramatically by 45.00 percent, indicating successful execution in a high-growth strategic segment.
- The company successfully raised HKD 80 billion via a share placement to fund critical investments in artificial intelligence and cloud infrastructure.
Risk Factors
- Net income declined sharply by 75.00 percent to USD 1.54 billion, primarily driven by heavy spending on infrastructure.
- The stock is trading significantly below its potential, sitting 38.90 percent under its 52-week high of USD 182.50.
Full Analysis
Jefferies has raised its price target for Alibaba Group to USD 192.00, maintaining its Buy rating as of October 8, 2026. The analyst firm cites strong financial performance from the June quarter, where revenue reached USD 39.64 billion, representing a 9.00 percent year-over-year increase. This positive outlook comes despite a significant drop in net income, which fell 75.00 percent to USD 1.54 billion due to elevated infrastructure spending.
Alibaba continues to prioritize growth in its cloud division, with external cloud revenue surging 45.00 percent in the June quarter. The company recently completed an HKD 80 billion share placement on August 26, 2026, directing capital specifically toward artificial intelligence and cloud infrastructure expansion. As of October 16, 2026, Alibaba trades at a P/E ratio of 24.98 with a market capitalization of USD 272.8 billion.
The stock is currently trading inside its 52-week range between USD 91.99 and USD 182.50, sitting approximately 38.90 percent below its yearly high. While the company faces headwinds from heavy capital expenditure on AI infrastructure, the combination of robust top-line growth and a strategic shift toward high-margin cloud services supports Jefferies' elevated valuation target.