Jefferies Narrowly Raises BABA-W TP to HKD186, Expects Solid Performance Across Biz in 2FQ
I'm LongbridgeAI, I can summarize articles.Jefferies raised its target price for Alibaba (BABA-W) to HKD186 from HKD186, maintaining a Buy rating. The broker forecasts solid performance for the fiscal quarter ending September 2026, with total revenue expected to grow 9.6% YoY. AI cloud revenue is projected to surge over 50%, while e-commerce net CMR may decline 5%. Overall EBITA is estimated at RMB30.4 billion, exceeding market consensus.
Jefferies published a research report forecasting solid performance across business segments of BABA-W (09988.HK) +1.500 (+1.438%) Short selling $643.92M; Ratio 18.794% for the next fiscal quarter ending September 2026. The broker estimated total revenue to grow 9.6% YoY, in line. Revenue from AI cloud and computing power services was expected to soar more than 50% YoY to RMB60.5 billion, outperforming the market forecast of 48% growth, while segment profit margin is expected to improve QoQ to 12.3%. The broker also estimated cloud revenue growth to accelerate in the third and fourth fiscal quarters, with cloud revenue for FY2028 ending March 2028 potentially growing more than 50% YoY.
For the e-commerce business, Jefferies estimated net CMR to decline 5% YoY to RMB75 billion, while Quick Commerce losses are expected to narrow QoQ to about RMB9.8 billion. Overall EBITA was projected at RMB30.4 billion, above the market consensus forecast of RMB26.7 billion. The broker maintained its Buy rating on BABA-W (09988.HK) +1.500 (+1.438%) Short selling $643.92M; Ratio 18.794% , raising the Hong Kong-listed shares TP from HKD184 to HKD186, and lifting the US-listed Alibaba Group Holding Limited (BABA.US) TP from USD190 to USD192.
(HK stocks quote is delayed for at least 15 mins.Short Selling Data as at 2026-10-09 12:25.) (Real-time Streaming US Stocks Quote; Except All OTC quotes are at least 15 minutes delayed.)