Goldman Sachs analyst Ronald Keung maintained a Buy rating on Alibaba Group Holding. The firm lowered its price target to $177 from $186 due to equity offering dilution.
Goldman Sachs expects cloud revenue to grow 53% in the September quarter. The cloud division remains a primary growth driver for the company.
Earnings growth is expected to accelerate starting in the September quarter. Losses in the quick-commerce business are projected to narrow.
Alibaba shares rose in Thursday pre-market trading. The stock declined 1.89% in the previous session.
The positive sentiment comes as the company faces several securities class-action lawsuits.