Daiwa: Downgrades Alibaba-W target price to HKD 170, rating "Buy"
Daiwa released a research report stating that Alibaba-W's EBITA profit margin for the cloud business continued to fluctuate at the end of March, but the last quarter's CMR and cloud revenue still exceeded expectations. With the growth in inference demand and the release of the leading Tongyi Qianwen LLM series, they are optimistic that Alibaba Cloud will continue to expand its market share in the coming years. The firm believes that its ongoing investment in flash sales may raise some market concerns in the short term, but in the long run, it will benefit Taotian Group and local services. The firm believes that shareholder returns remain Alibaba's top priority. They have lowered the group's earnings per share forecast for the fiscal years 2026 to 2027 by 1% to 2%, reiterating a "Buy" rating, with the target price adjusted from HKD 175 to HKD 170
According to Zhitong Finance APP, Daiwa released a research report stating that Alibaba-W (09988) experienced continued fluctuations in EBITA profit margins for its cloud business in the fiscal quarter ending in March, but the last quarter's CMR and cloud revenue still exceeded expectations. With the growth in inference demand and the release of the leading Tongyi Qianwen LLM series, they are optimistic that Alibaba Cloud will continue to expand its market share in the coming years. The firm believes that its ongoing investment in flash sales may raise some market concerns in the short term, but in the long run, it will benefit Taotian Group and local services. The firm believes that shareholder returns remain Alibaba's top priority. They have lowered the group's earnings per share forecast for the fiscal year 2026 to 2027 by 1% to 2%, reaffirming a "Buy" rating, with the target price adjusted from HKD 175 to HKD 170
