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<Research>CMS Raises BABA-W TP to HKD171 w/ Solid Improving Trend
BABA-W (09988.HK)(BABA.US) reported revenue for the fiscal quarter ending March 2025 that was 1% below expectations, in wake of a lower Cainiao's revenue and a slowdown in grow...
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<Research>CMS Raises BABA-W TP to HKD171 w/ Solid Improving Trend
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BABA-W (09988.HK)  +2.600 (+2.181%)    Short selling $508.52M; Ratio 11.514%   (BABA.US)      reported revenue for the fiscal quarter ending March 2025 that was 1% below expectations, in wake of a lower Cainiao's revenue and a slowdown in growth for AIDC (Alibaba International Digital Commerce), CMS said in its report.

However, the performance of TTG (Taobao and Tmall Group) excelled expectations, with margins remaining stable at 41% YoY. Adjusted EBITA accelerated its annual growth to 36%, aided by cautious cost control and AI-driven efficiency improvements, leading to increased margins.

Related NewsMacquarie Recommends Buying BABA-W on Dips; Rating Reiterated as Outperform
The broker revised down Alibaba's revenue expectations for 2026 and 2027 by 2% given the impact of AIDC and Cainiao. Net profit forecasts were lowered by 5% and 2%, respectively, due to increased investment in local commerce.

The target price for BABA-W (09988.HK)  +2.600 (+2.181%)    Short selling $508.52M; Ratio 11.514%   was raised from HKD165 to HKD171, and for Alibaba (BABA.US)      from USD170 to USD176, with a Buy rating maintained.
(HK stocks quote is delayed for at least 15 mins.Short Selling Data as at 2025-05-20 12:25.) (Real-time Streaming US Stocks Quote; Except All OTC quotes are at least 15 minutes delayed.)

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