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<Research>CICC Keeps BABA-W TP at $197; Cloud Computing Accelerates Growth; Quick Commerce/ Other Biz Losses Deepen
BABA-W (09988.HK)(BABA.US) was expected to log a 3.8% YoY revenue increase to RMB245.5 billion in 2QFY26, CICC said in a research report. The adjusted EBITA was projected to nosedi...
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<Research>CICC Keeps BABA-W TP at $197; Cloud Computing Accelerates Growth; Quick Commerce/ Other Biz Losses Deepen
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BABA-W (09988.HK)  -3.000 (-1.845%)    Short selling $6.29B; Ratio 13.896%   (BABA.US)      was expected to log a 3.8% YoY revenue increase to RMB245.5 billion in 2QFY26, CICC said in a research report. The adjusted EBITA was projected to nosedive 83% YoY to RMB7.1 billion, and profits below consensus, attributable to heightened investment in quick commerce and expanded losses in other businesses.

CICC projected Alibaba's cloud computing revenue to grow 30% YoY in 2QFY26, accelerating from 26% growth in the previous quarter. The company also estimated a 9% cloud computing EBITA margin in 2QFY26. Alibaba launched a series of models, AI applications, and hardware devices during the Yunqi Conference. Alibaba Cloud's supply-side advantages were expected to juice sustained growth in cloud computing revenue and profits, boosting its valuation.

Related NewsUBS Expects Alibaba Group(BABA.US) 2FQ Core Biz to Slightly Beat Expectations
CICC trimmed Alibaba's revenue forecast for FY2026 by 1% to RMB1.0615 trillion, while maintaining FY2027 revenue forecast largely unchanged, mainly due to AIDC and quick commerce revenue being below the broker's projections. The non-GAAP net profit attributable to shareholders for FY2026-27 was lowered by 17% and 4% to RMB101.2 billion and RMB143.8 billion, respectively, given deepened losses in quick commerce and other businesses.

CICC maintained a target price of USD204 for Alibaba's US stocks and HKD197 for Hong Kong stocks, with an Outperform rating upheld.
(HK stocks quote is delayed for at least 15 mins.Short Selling Data as at 2025-10-13 16:25.) (Real-time Streaming US Stocks Quote; Except All OTC quotes are at least 15 minutes delayed.)

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Related NewsHSBC Research Raises BABA-W (09988.HK) TP to $200, Optimistic About LT Growth Prospects of Cloud Biz

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