Morningstar and Morgan Stanley have substantially raised their price targets on BABA.
After more than doubling this year, Alibaba’s stock is likely to resume its hot winning streak into the new trading week, fueled by fresh bullish signals.
According to a Bloomberg report, Morningstar raised its price target on BABA by 49% to $267, while Morgan Stanley raised the target by 21% to $200. Alibaba is the top gainer among tech stocks in Hong Kong this month. Those shares gained 4% by mid-day Monday, taking the monthly gains to nearly 50%.
Analysts are widely impressed by the stock’s strength, a sharp turnaround from just months ago when it was weighed down by U.S. tariff pressures and heavy spending to compete in China’s highly competitive food delivery market. Its trajectory has put Chinese tech stocks back on investors’ watch, who are now beginning to renew their positions.
“The shares appear undervalued,” Chelsey Tam, a senior analyst at Morningstar, said in a note, according to the Bloomberg report. “Alibaba’s increased investment in overseas data centers, competitive performance, widespread use of its open-source models, and improved performance of its self-developed chip all support cloud revenue growth.”
At the company’s cloud event last week, CEO Eddie Wu said that Alibaba would invest more than its previously committed 380 billion yuan ($53 billion) on AI models and infrastructure development, “vigorously advancing” its AI plans. It also announced a new partnership with Nvidia to develop AI products, as well as plans to open new data centers in several regions.
In its note, Morgan Stanley stated that it is “incrementally bullish on Alicloud’s outlook” following the conference, and raised its “cloud growth estimates to 32% for FY26 and 40% for FY27, driven by increased capex, model upgrades, strategic partnerships, and accelerated international expansion.”
On Stocktwits, the retail sentiment for BABA was ‘bullish,’ unchanged since Friday, with users anticipating new highs for the stock this week.
“Congrats to those who bought when the going was tough and when Chinese equities were deemed “uninvestable” … Fundamentals and valuations were so attractive that it was literally a no-brainer to park some money in these gems!” said one user.
Year-to-date, BABA stock is up 105.3%, trading at near four-year highs, while the Hong Kong shares have surged over 110%.
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