Goldman Adds Alibaba to Conviction List on 31% Growth Forecast

Goldman Projects 31% EPS Growth, Adding Alibaba to Top Picks

Goldman Sachs has added Alibaba's U.S.-listed shares (BABA.US) to its APAC Conviction List, citing a strong outlook for earnings growth. The investment bank anticipates that after a temporary squeeze on earnings in the second half of fiscal year 2026, Alibaba will deliver robust year-over-year EPS growth of 31% in fiscal year 2027 and 36% in fiscal year 2028. As part of this list adjustment, Goldman Sachs removed HORIZONROBOT-W (09660.HK).

AI and Cloud Leadership Seen as Undervalued Catalysts

Goldman's report underscores the belief that Alibaba's current valuation does not fully capture its strategic advantages. The bank highlights the company's continued leadership in China's artificial intelligence and cloud computing sectors, where growth is expected to accelerate. Furthermore, Goldman pointed to a recovery in Alibaba's domestic e-commerce business and narrowing losses in its instant retail division as positive operational trends. The analysis concludes that the market is underappreciating both Alibaba's comprehensive AI deployment and the future potential of its international cloud operations.