BofAS Raises BABA-W TP to HKD175, Earnings Improve but Sentiment Yet to Recover
I'm LongbridgeAI, I can summarize articles.BofAS raised Alibaba's (BABA-W) Hong Kong stock target price to HKD175 and US stock target to USD178, citing improving earnings despite lingering weak sentiment. The broker reiterated a 'Buy' rating, forecasting a 3-9% increase in earnings estimates. Key projections include 52% YoY growth in cloud revenue with expanding margins, potential breakeven for combined cloud and AI businesses by late FY2027, a 5% drop in customer management revenue, and narrowing losses in quick commerce.
BofAS issued a research report stating that the preview of BABA-W (09988.HK) +1.600 (+1.495%) Short selling $1.38B; Ratio 17.944% 's results for the second fiscal quarter ended late Sep this year reflected improving earnings, although market sentiment has yet to recover. BofAS raised its earnings forecasts for Alibaba by 3% to 9%, lifted the Hong Kong stock TP to HKD175, and increased the US stock TP for Alibaba Group Holding Limited (BABA.US) to USD178. It reiterated a "Buy" rating, believing that the current share price level has yet to fully reflect the earnings inflection point.
The broker forecast Alibaba's cloud business revenue for the second fiscal quarter to grow 52% YoY, with margins expected to expand. It estimated that the combined cloud and AI businesses could turn breakeven in 2H27 of FY2027 ending late Mar next year. Customer management revenue (CMR) is expected to fall 5% YoY, while adjusted EBITA of China's e-commerce business excluding quick commerce is expected to remain broadly flat. Losses from quick commerce are also expected to continue narrowing as anticipated. (gc/da)(HK stocks quote is delayed for at least 15 mins.Short Selling Data as at 2026-10-09 16:25.) (Real-time Streaming US Stocks Quote; Except All OTC quotes are at least 15 minutes delayed.)