JPMorgan raises price target for Alibaba H shares from HK $165 to HK $240

JPMorgan sharply raised its target price for Alibaba's Hong Kong stock to HK $240, saying growth in cloud computing and e-commerce could support its higher valuation. Alibaba Cloud revenue growth accelerated for eight consecutive quarters, growing 26% year-on-year in the second quarter of 2025, driven by demand for generative AI in areas such as the internet, autonomous driving, and embodied intelligence, analysts Alex Yao and others said in the report. The adoption of generative AI in China is expected to outpace previous waves of software-as-a-service (SaaS), as there is a wider scope for efficiency gains and lower barriers to deployment. It is expected that in the next 12-36 months, generative AI will move from the tool trial stage to agent automation, covering marketing, services, coding, financial operations and supply chain. Service costs will steadily decrease, and most customer-facing channels will have higher conversion rates/throughput. Increase the target price of Alibaba US stocks from 170 US dollars to 245 US dollars, and the target price of Hong Kong stocks from 165 Hong Kong dollars to 240 Hong Kong dollars.