Both Barclays and JPMorgan have raised their price targets for Alibaba (NYSE: BABA) shares following the company’s announcement of strong quarterly financial results. These ratings reflect the institutions’ confidence in the continuous growth of Alibaba’s e-commerce revenue as well as its increasing potential in the cloud and artificial intelligence sectors.
Meanwhile, JPMorgan raised its 2025 price target from $165 to $170 while maintaining its “Overweight” rating. The bank expects Alibaba’s earnings to grow at an annual rate of 29% between fiscal years 2025 and 2027, and it considers the company a leader in China’s artificial intelligence sector, supported by the expansion of its investments in AI.
On the other hand, Barclays maintained its “Overweight” rating and raised its price target to $180, thanks to the stronger-than-expected growth in Customer Management Revenue (CMR) – revenue generated from activities related to customer relationship management, such as subscriptions, advertising, and specialized services aimed at enhancing customer relations and boosting sales. The bank also noted an increased investor interest in Alibaba’s cloud sector.
Both banks mentioned that the improved profitability of e-commerce and the growth achieved by the company through artificial intelligence in cloud revenue are the main factors driving the rise in the stock price.
