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<Research>BofAS Cuts BABA-W TP to $132; On-demand Delivery to Briefly Squeeze E-commerce Margins
Recommend 25 Positive 38 Negative 9 |
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In wake of the impact of SUNART RETAIL (06808.HK) and Intime being deconsolidated, BofA Securities cut BABA-W (9988.HK)’s total revenue forecast for FY2026-27 by 4% (partially offset by growth in instant retail revenue), BofA Securities said in its report. The group's adjusted net profit forecasts were chopped by 18% and 4% to RMB135.4 billion and RMB173.4 billion, respectively, with adjusted EBITA contributions from China's e-commerce at RMB149.4 billion and RMB188.7 billion. Based on model adjustments, the target price on BABA-W was lowered from HKD141 to HKD132, and that on Alibaba (BABA.US) was chopped from USD145 to USD135, but the Buy rating was maintained. Factors considered included: healthy growth momentum in core e-commerce; AI as a long-term growth theme; a 10x FY2027E adjusted P/E; and potential upside catalysts of food/ on-demand delivery market share gain and consumer stimulus. AASTOCKS Financial News Website: www.aastocks.com |
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