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<Research>HSBC Global Research Lifts BABA-W TP to $156; AI-driven Inflection Pt
Recommend 55 Positive 89 Negative 32 |
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BABA-W (09988.HK) beat expectations in terms of revenue and earnings from its core business in the third fiscal quarter ended December 2024, thanks to the stronger-than-expected growth in customer management revenue (CMR) and cloud computing business, according to a research report released by HSBC Global Research. The broker turned more constructive on the CMR outlook where a better take rate continues to be a driver. It also lifted its FY2026 cloud revenue growth to 17% from 12%. It believed that there is room for upward adjustment in the forecasts related to public cloud and AI cloud businesses. The higher capex indicated that the group is confident in the sustainability of the growth in demand for cloud services. Taking into account the impact of the disposal of SUNART RETAIL (06808.HK) and Intime, the broker trimmed its revenue forecast for Alibaba for FY2025-27 by 1-6%, and hiked its net profit forecast by about 2-4%. In view of that the inflection point driven by AI has arrived, the target price was raised from $125 to $156, and the Buy rating was reiterated. AAStocks Financial News |
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