Wall Street Splits on Alibaba: Two Firms Hike Price Targets to $195 as Cloud Growth Hits 38%

"Barclays raised its price target to $195 from $186 while reiterating an Overweight rating, and Mizuho analyst Wei Fang lifted his target to $195 from $190 with an Outperform rating. The convergence comes one day after Alibaba's Q4 FY2026 report, where Cloud Intelligence Group revenue grew 38% year over year. For long-term investors, the dual analyst upgrade signals growing Wall Street conviction in the AI cloud story, even as near-term margin pressure remains a real concern."

"Barclays anchored its bull case on accelerating cloud momentum, noting that Alibaba's cloud growth accelerated further to over 38% year over year in Q1 and that agentic AI annual recurring revenue is ramping. That growth rate ranks among the fastest of any major global cloud platform, putting Alibaba Cloud in rare company."

"Mizuho's Wei Fang took a more nuanced view on Alibaba. The quarter missed on EBITA due to increased token demand and higher costs, which Fang expects to drive downward EBITA estimates. Even so, Mizuho believes that Alibaba's strong AI cloud trend will help support a re-rating of the shares. The same token demand pressuring margins is also the clearest demand signal bulls want to see."

"CEO Eddie Wu framed the strategy bluntly on the May 13 call: "Alibaba's full-stack AI investments have progressed from incubation to commercialization at scale." Alibaba's AI-related products now account for 30% of external cloud revenue, marking the eleventh consecutive quarter of t"

Barclays increased Alibaba’s price target to $195 from $186 and kept an Overweight rating. Mizuho raised its target to $195 from $190 and maintained an Outperform rating. Both firms pointed to accelerating cloud growth, including Cloud Intelligence Group revenue growth of 38% year over year and further acceleration in Q1. Barclays highlighted ramping agentic AI annual recurring revenue and strong cloud momentum. Mizuho noted a quarter that missed on EBITA due to increased token demand and higher costs, which it expects to pressure EBITA estimates. Alibaba continues investing heavily in AI and cloud infrastructure, with AI-related products contributing 30% of external cloud revenue for the eleventh consecutive quarter.

Read at 24/7 Wall St.