Mizuho raised its price target on Alibaba (NYSE:BABA) from $140 to $170, maintaining an Outperform rating and naming the Chinese tech giant a Top Pick in the Asia Internet sector.
The bullish call follows a deep dive into Alibaba’s artificial intelligence initiatives, with analysts highlighting three key drivers behind the upgrade. First, Mizuho sees robust AI infrastructure positioning Alibaba for long-term success—from building scalable models and API platforms to delivering tailored AI solutions across industries. Second, AI is expected to boost internal efficiency, particularly in areas like product recommendations and conversion optimization, while non-core businesses (ex-Taobao/Tmall Group) are on track to narrow losses and approach breakeven over the next two years.
Third, Mizuho raised its 2026 cloud revenue growth forecast from 13% to 17%, citing increased confidence in Alibaba’s product roadmap and a more optimistic outlook for enterprise IT spending in China.
The new $170 target reflects a 12x multiple on 2026 EBITDA, up from 10x previously, aligning with a broader re-rating across the Chinese tech space and improving macro sentiment.