Goldman Sachs reiterated its Buy rating for Alibaba on Thursday. Analyst Ronald Keung identified the company's cloud computing business as a significant bright spot.
Keung pointed to accelerating cloud growth and greater certainty regarding returns on invested capital. The firm raised its cloud revenue growth estimates for the upcoming quarters.
Goldman Sachs lowered its 12-month price target for Alibaba to $177 from $186. The adjustment reflects the dilutive effect of a recent HK$80 billion equity offering.
Alibaba's U.S.-listed shares rose in pre-market trading following the report.