Morgan Stanley upgraded Alibaba (BABA) to Overweight from Equal Weight with a price target of $180, up from $100. The firm says it underestimated the surge in the company’s artificial intelligence-driven cloud demand and resiliency of its core Taobao and Tmall Group business. The analyst forecasts Alibaba’s cloud revenue will double in three years, and values AliCloud at $100 per share under a “high-end scenario.” As the market shifts focus from weak consumption to technological breakthrough in China, the Chinese internet companies offer “superior exposure to AI enablers / adopters,” the analyst tells investors in a research note.
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