Alibaba (BABA, Financial) continues its upward momentum in pre-market trading, with shares climbing 3.58%. The stock is poised to reach new heights as the company is set to announce its earnings soon. UBS has released a forecast for Alibaba's financial performance for the third quarter of fiscal 2025. The report projects Alibaba's revenue to be 274.557 billion RMB, marking a 5.5% year-over-year increase and a 16.1% sequential growth, slightly below the market consensus of 278.779 billion RMB.
UBS highlights that if the macroeconomic environment stabilizes and competition eases, Alibaba's valuation could see an upward revision. The firm has assigned a "buy" rating to Alibaba, with a target price of $140 for its U.S. shares, corresponding to a price of 136 HKD for its Hong Kong shares, reflecting an estimated P/E ratio of 18 for fiscal 2026.
