--- title: "Why Analysts Raise Alibaba Stock Price Targets Despite 84% Profit Decline in Q4" type: "News" locale: "en" url: "https://longbridge.com/en/news/286402735.md" description: "Despite an 84% profit decline in Q4 FY26, analysts are optimistic about Alibaba's (BABA) growth in cloud and AI sectors. Following disappointing earnings, Deutsche Bank raised its price target to $195, citing strong cloud revenue growth and improved monetization. Morgan Stanley also increased its target to $190, highlighting AI's significant contribution to cloud revenue. Overall, Alibaba holds a Strong Buy consensus rating with an average price target of $186.32, indicating a potential upside of over 30%." datetime: "2026-05-14T10:46:16.000Z" locales: - [zh-CN](https://longbridge.com/zh-CN/news/286402735.md) - [en](https://longbridge.com/en/news/286402735.md) - [zh-HK](https://longbridge.com/zh-HK/news/286402735.md) --- # Why Analysts Raise Alibaba Stock Price Targets Despite 84% Profit Decline in Q4 Alibaba (BABA) reported weaker-than-expected Q4 FY26 results yesterday. While Alibaba's core profitability fell sharply, with adjusted EBITA down 84% year-over-year to 5.1 billion yuan due to heavy AI and e-commerce spending, Wall Street analysts remained upbeat about the company's fast-growing cloud and AI business. Following the earnings release yesterday, several firms have raised their price targets on the stock. ### Claim 55% Off TipRanks - Unlock hedge fund-level data and powerful investing tools for smarter, sharper decisions - Discover top-performing stock ideas and upgrade to a portfolio of market leaders with Smart Investor Picks For context, Alibaba operates China's largest e-commerce platforms while also expanding rapidly in cloud computing and artificial intelligence services. ## **Analysts Turn More Bullish on Alibaba's AI Business** Following the earnings Q4 print, Deutsche Bank analyst Peter Milliken raised his price target on Alibaba stock to $195 from $185 while maintaining a Buy rating. The 4-star analyst pointed to improving monetization at Taobao and Tmall, along with accelerating cloud growth. Importantly, Alibaba's external cloud revenue rose 40% year-over-year, while AI-related revenue continued growing at triple-digit rates. Milliken also highlighted management's guidance that MaaS (Model-as-a-Service) annual recurring revenue could rise from 8 billion yuan currently to 30 billion yuan by the end of the year. Likewise, Morgan Stanley analyst Gary Yu raised his price target on BABA stock to $190 from $180 while maintaining an Overweight rating. Yu noted that AI revenue reached 9 billion yuan during the quarter and now accounts for roughly 30% of Alibaba's external cloud revenue. The analyst also expects cloud margins to improve over the next few quarters as higher-margin AI services continue growing. However, Yu noted that losses tied to AI model training, quick commerce, and app investments remain key areas investors are watching closely. ## **Is Alibaba Stock a Buy Now?** Wall Street remains constructive on the stock. Alibaba carries a Strong Buy consensus rating based on 15 Buy ratings and two Holds over the past three months. The average BABA price target stands at $186.32, suggesting roughly 30.35% upside from current levels. ### Related Stocks - [09988.HK](https://longbridge.com/en/quote/09988.HK.md) - [BABA.US](https://longbridge.com/en/quote/BABA.US.md) - [CLOU.US](https://longbridge.com/en/quote/CLOU.US.md) - [BABX.US](https://longbridge.com/en/quote/BABX.US.md) - [KBAB.US](https://longbridge.com/en/quote/KBAB.US.md) - [DB.US](https://longbridge.com/en/quote/DB.US.md) - [DBK.DE](https://longbridge.com/en/quote/DBK.DE.md) - [MS.US](https://longbridge.com/en/quote/MS.US.md) - [89988.HK](https://longbridge.com/en/quote/89988.HK.md) - [HBBD.SG](https://longbridge.com/en/quote/HBBD.SG.md) - [03KB.DE](https://longbridge.com/en/quote/03KB.DE.md) - [DPB.DE](https://longbridge.com/en/quote/DPB.DE.md) - [MS-O.US](https://longbridge.com/en/quote/MS-O.US.md) - [MS-Q.US](https://longbridge.com/en/quote/MS-Q.US.md) - [MS-E.US](https://longbridge.com/en/quote/MS-E.US.md) - [MS-I.US](https://longbridge.com/en/quote/MS-I.US.md) - [MS-L.US](https://longbridge.com/en/quote/MS-L.US.md) - [MS-P.US](https://longbridge.com/en/quote/MS-P.US.md) - [MS-A.US](https://longbridge.com/en/quote/MS-A.US.md) - [MS-F.US](https://longbridge.com/en/quote/MS-F.US.md) - [MS-K.US](https://longbridge.com/en/quote/MS-K.US.md) ## Related News & Research - [Alibaba’s AI Growth Fails to Mask Plunging Profits: How to Play BABA Stock After Q4 Earnings](https://longbridge.com/en/news/286595614.md) - [Alibaba Options Alert: Traders Brace for a 6.88% Move in BABA Stock after Q4 Earnings](https://longbridge.com/en/news/286115519.md) - [Alibaba Group (NYSE:BABA) Stock Price Up 8.1% Following Dividend Announcement](https://longbridge.com/en/news/286319056.md) - [Akamai Bets Big on AI in Latest Earnings](https://longbridge.com/en/news/285786138.md) - [Alibaba Group (NYSE:BABA) Sees Strong Trading Volume - Should You Buy?](https://longbridge.com/en/news/286296482.md)