Alibaba rises as BofA lifts price targets ahead of earnings
Bank of America kept its Buy rating on Alibaba and raised targets in the U.S. and Hong Kong, citing faster cloud growth and stronger quarterly profit.
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what happened
According to GuruFocus, Bank of America increased its valuation for Alibaba Group before the company reports September-quarter results, while retaining a Buy rating. The brokerage now values the U.S.-listed shares at $178, up from $175, and the Hong Kong-listed stock at HK$175, versus HK$172 previously.
BofA estimates that quarterly revenue will be 10% higher than a year earlier, while adjusted EBITA reaches 30 billion yuan, above the 26 billion yuan consensus. The bank sees cloud sales growth accelerating to 52% from 45% in the previous quarter, with the division’s adjusted EBITA margin rising to 12.9% from 11.6%.
Online retail demand remains a source of pressure. BofA expects customer-management revenue to fall 5%, although e-commerce adjusted EBITA could increase 2% as efficiency initiatives and smaller quick-commerce losses provide support. AI-related losses are projected to decline to 11 billion yuan from 14 billion yuan. Alibaba is expected to release results between late October and mid-November, while its Hong Kong shares advanced nearly 3% in Monday morning trading.
why it matters
Investors will focus on cloud growth, margins and the extent to which cost controls can offset weaker online-retail demand and reduce losses in quick commerce and AI-related operations.
instruments
sources
- Alibaba Stock Jumps as BofA Hikes Price Target Ahead of Earnings — GuruFocus, 12 October 2026 at 12:27 UTC
prepared by the newsmetry newsroom with ai assistance from the sources listed below. not investment advice.
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