CMB International: Raises Alibaba-W target price to HKD 198, reiterates it as the preferred target in Chinese internet
CITIC Securities International released a research report stating that it reiterates Alibaba-W as the preferred target in the Chinese internet sector. Based on SOTP valuation, the target price is raised by 25%, from HKD 159 to HKD 198, indicating a potential upside of 14%. The firm remains optimistic about the group's strong execution capabilities, business synergies, and its position as a key beneficiary of AI due to its full-stack technology and product layout. Therefore, it maintains its "Buy" rating. The report indicates that due to Alibaba's increased capital expenditure budget and strong demand, the firm has raised its revenue forecasts for the cloud business for the fiscal years 2026-2027 by 3%/7%, expecting revenue growth of 27%/25% year-on-year, while profit margins remain stable. Additionally, based on strong demand and ongoing AI product innovation and market leadership, the firm has raised its revenue and core net profit forecasts for Alibaba for the fiscal year 2027-2028 by no more than 1%
According to the Zhitong Finance APP, China Merchants Securities International released a research report reiterating Alibaba-W (09988) as the preferred target in the Chinese internet sector. Based on SOTP valuation, the target price has been raised by 25%, from HKD 159 to HKD 198, indicating a further upside potential of 14%. The firm remains optimistic about the group's robust execution capabilities, business synergies, and its position as a key beneficiary of AI due to its full-stack technology and product layout. Therefore, it maintains its "Overweight" rating.
The report states that due to Alibaba's increased capital expenditure budget and strong demand, the firm has raised its cloud business revenue forecasts for the fiscal years 2026-2027 by 3%/7%, expecting revenue growth of 27%/25% year-on-year, while profit margins remain stable. Additionally, based on strong demand and ongoing AI product innovation and market leadership, the firm has adjusted its revenue and core net profit forecasts for Alibaba for the fiscal year 2027-2028 by no more than 1%
