Since the turn of the year, more and more Wall Street banks have turned bullish on the Chinese tech sector, with Alibaba emerging as a favorite stock.
The Chinese tech giant, which spans e-commerce, technology and internet segments, is due to report its earnings for the December quarter on Thursday.
The bank has named Alibaba its "top pick" in the Chinese tech sector for the first time in three years.
Morgan Stanley has a base-case price target of $150 on Alibaba, and a bull-case price target of $200.
"We believe the 2-year long earnings downward revision cycle has likely bottomed," Goldman said, giving Alibaba a price target of $138.