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<Research>CLSA Downgrades Alibaba (BABA.US) to Outperform; 2026E Adj. NP Cut by 25%
CLSA released a research report, covering BABA-W (09988.HK)(BABA.US), which was projected to log a slowdown in YoY revenue growth to 2.4% for 1FQ ending in June, in wake of the dec...
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<Research>CLSA Downgrades Alibaba (BABA.US) to Outperform; 2026E Adj. NP Cut by 25%
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CLSA released a research report, covering BABA-W (09988.HK)  +1.200 (+1.037%)    Short selling $662.20M; Ratio 7.482%   (BABA.US)      , which was projected to log a slowdown in YoY revenue growth to 2.4% for 1FQ ending in June, in wake of the deconsolidation of SUNART RETAIL (06808.HK)  +0.020 (+0.966%)    Short selling $6.90M; Ratio 17.627%   and Intime.

Discounting these factors, the group's revenue was expected to grow by about 10%, driven mainly by a solid 10% growth in TTG (Taobao and Tmall Group)'s CMR, a 20% increase in international retail, and a 22% growth in cloud.

Related NewsCLSA: Subsidy War Causes JD-SW/ BABA-W to Lose RMB10B on Instant Retail Biz in 2Q
CLSA anticipated that Alibaba's instant retail losses may further expand in 2FQ ending in September, leading to a 25% reduction in the adjusted net profit forecast for FY2026.

The target price for US shares was trimmed from USD165 to USD155, and the rating was downgraded from High-Conviction Outperform to Outperform.
(HK stocks quote is delayed for at least 15 mins.Short Selling Data as at 2025-08-01 16:25.) (Real-time Streaming US Stocks Quote; Except All OTC quotes are at least 15 minutes delayed.)

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