<div id="readability-page-1"><p>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.</p><h3>Claim 55% Off TipRanks</h3><ul><li>Unlock  hedge fund-level data  and  powerful investing tools  for smarter, sharper decisions  </li><li> Discover top-performing stock ideas and upgrade to a portfolio of market leaders with  Smart Investor Picks  </li></ul> <p>For context, Alibaba operates China's largest e-commerce platforms while also expanding rapidly in cloud computing and artificial intelligence services.</p> <h2><strong>Analysts Turn More Bullish on Alibaba's AI Business</strong></h2> <p>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.</p> <p>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.</p> <p>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.</p> <p>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.</p> <h2><strong>Is Alibaba Stock a Buy Now?</strong>  </h2> <p>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.</p></div>

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<p>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%.</p>

- Alibaba (BABA) reported disappointing Q4 FY26 earnings, with adjusted EBITA down 84% year-over-year at 5.1 billion yuan due to significant spending on AI and e-commerce.  
- Despite this, analysts remain optimistic, raising price targets for the stock, with Deutsche Bank increasing its target to $195 and Morgan Stanley to $190, citing growth in cloud and AI revenue.  
- Alibaba's external cloud revenue rose 40% year-over-year, and the stock has a Strong Buy consensus rating, indicating a potential upside of approximately 30.35%.

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Why Analysts Raise Alibaba Stock Price Targets Despite 84% Profit Decline in Q4