Benchmark Reiterates Buy Rating on Alibaba (BABA)

Benchmark analyst Fawne Jiang reiterated a Buy rating and $176.00 price target on Alibaba (NYSE: BABA).

The analyst commented, "We have revised down our F1Q26 and FY26 earnings estimates to reflect NT margin pressure stemming from its investment uptick in Food Delivery and Instant Retail. While we view this investment ramp-up as initially defensive, aimed at countering JD’s entry and early share gains, we also see several potentially positive strategic implications for BABA: 1) JD’s move has catalysed BABA to reevaluate and reposition its core ecommerce strategy through a more integrated retail ecosystem approach. If executed well, this could yield long-term benefits for BABA’s core commerce growth. 2) BABA’s financial strength gives it the flexibility to scale, adapt, and potentially increase user engagement over time, even if the near-term return on investment remains uncertain. 3) BABA’s positioning as a leading GenAI and cloud infrastructure provider remains unchanged, underpinning a key pillar of our longer-term positive view. As such, our fundamental thesis remains intact. We view recent weakness as a buying opportunity and recommend investors build exposure to BABA on dips."

For an analyst ratings summary and ratings history on Alibaba click here. For more ratings news on Alibaba click here.

Shares of Alibaba closed at $120.23 yesterday.

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