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<Research>BofAS Cuts BABA-W TP to $132; On-demand Delivery to Briefly Squeeze E-commerce Margins
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% (partiall...
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<Research>BofAS Cuts BABA-W TP to $132; On-demand Delivery to Briefly Squeeze E-commerce Margins
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In wake of the impact of SUNART RETAIL (06808.HK)  -0.020 (-0.844%)    Short selling $281.31K; Ratio 2.384%   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.

Related NewsM Stanley: BIDU-SW (09888.HK), Uber (UBER.US) Deploy Autonomous Vehicles Globally, Aligning with Asset-light Strategy
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.
(HK stocks quote is delayed for at least 15 mins.Short Selling Data as at 2025-07-16 16:25.) (Real-time Streaming US Stocks Quote; Except All OTC quotes are at least 15 minutes delayed.)

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