Alibaba's cloud and e-commerce businesses will likely continue to perform well, Nomura analysts write in a note.

The acceleration in 3Q customer management revenue was supported by improving take rate, they say. Gross merchandise volume is also benefiting from China's ongoing trade-in programs, they say.

The company plans to invest more than $50 billion into its cloud business over the next three years, but any margin pressure should be offset by revenue generated from the new infrastructure business, Nomura says.

The brokerage maintains a buy rating on the stock with a target price of $172.00. The ADRs last closed at $136.55.