BABA(BABA) The Motley Fool·2025-03-28 17:57Core Viewpoint - Alibaba Group's stock experienced a nearly 3% decline amid broader market sell-off influenced by new inflation data, despite an analyst raising the price target for the stock [1][2] Group 1: Analyst Insights - Mizuho analyst James Lee maintained an outperform rating on Alibaba and increased the price target from 170, attributing this to strong advancements in the company's AI strategy [3] - Lee anticipates that Alibaba's AI investments will enhance product recommendations, leading to increased sales [3] - The revenue outlook for Alibaba's cloud division for fiscal year 2026 was raised from 13% growth to 17% year over year, reflecting improved visibility into the product roadmap and positive sentiment regarding enterprise spending in China [4] Group 2: Market Context - The Personal Consumption Expenditures index rose 0.4% in February from the previous month and 2.8% year over year, slightly exceeding estimates and raising inflation concerns [2] - Chinese tech stocks, including Alibaba, are viewed as more attractive due to government support, potential future stimulus, and optimism surrounding AI innovation, with Alibaba trading at less than 15 times forward earnings [5]