Xiaomo: Maintaining Alibaba-W (09988) “Gain” Rating Target Price of HK$200

The Zhitong Finance App learned that J.P. Morgan Chase released a research report stating that it will maintain Alibaba's (BABA.US, 09988) “gain” ratings for US stocks and Hong Kong stocks, and renew the target prices of 205 US dollars and 200 Hong Kong dollars, respectively. The bank lowered the company's total revenue forecast for FY2027 by 1% to reflect a weaker macro and consumer environment, but raised its forecast for FY2028 by 3% to reflect steady revenue growth prospects for the cloud business.

Losses in Ali's food delivery and instant retail investments narrowed rapidly, and as revenue from the cloud business grew faster, and during the Lunar New Year period, Tongyi Qianwen (Qwen) user acquisition expenses increased, causing losses from other businesses to decrease quarterly. As a result, the company's adjusted earnings per share estimate for fiscal year 2027 was raised by 2%, the first time since May 2025. The bank expects Ali's first quarter results for the 2027 fiscal year to beat market expectations.