BNP Paribas initiated coverage on Alibaba (BABA) with an Outperform rating. The bank set a Street-high price target of $209, implying a potential upside of approximately 58%.
BNP Paribas expects accelerated cloud revenue growth through enhanced artificial intelligence monetization. The bank anticipates that AI capital expenditures will translate into consistent cloud revenues as businesses expand AI operations.
Alibaba shares rose approximately 8.7% over the past month. The stock remains down nearly 16% year-to-date. Analysts suggest the current valuation does not fully reflect the company's strategic transformation.
Wall Street maintains a Strong Buy consensus on the stock. The average 12-month price target among analysts is $182.29.