Citigroup: Maintains "buy" rating on BABA-W (09988) and raises target price to 199 Hong Kong dollars.
In the third quarter of the fiscal year 2026, the performance was lower than expected, but the management confidently explained that external cloud revenue exceeded 100 billion RMB in February 2026.
Citi released a research report stating that based on a strong AI layout, they maintain a "buy" rating for Alibaba-W (09988). Due to the customer management revenue in the fourth quarter of the 2026 fiscal year rebounding to a growth of over 6%, and continuous improvement in EBITA, coupled with the assumption of accelerating cloud revenue growth, the bank has raised Alibaba's target price from 195 Hong Kong dollars to 199 Hong Kong dollars, and Alibaba's target price from 197 US dollars to 200 US dollars.
Alibaba's performance in the third quarter of the 2026 fiscal year fell below expectations, but management expressed confidence that with external cloud revenue surpassing 100 billion RMB in February 2026, it is expected that AI and cloud revenue will exceed 1 trillion US dollars within 5 years. This means that driven by the MaaS platform and enterprise solutions, the compound annual growth rate will exceed 40%.
Related Articles
A-share market review | The market fluctuated and adjusted throughout the day, with the Shanghai Composite Index closing down 3.63% and barely holding above 3800. Nearly 5200 stocks closed in the red.
China Securities Co., Ltd.: Geopolitical conflicts drive the turning point of the cycle, disposable gloves usher in a new stage of price repair.
HK Stock Market Move | The entire mobile phone industry supply chain is declining. Morgan Stanley has lowered this year's global smartphone shipment forecast by 15%.
A-share market review | The market fluctuated and adjusted throughout the day, with the Shanghai Composite Index closing down 3.63% and barely holding above 3800. Nearly 5200 stocks closed in the red.
China Securities Co., Ltd.: Geopolitical conflicts drive the turning point of the cycle, disposable gloves usher in a new stage of price repair.
HK Stock Market Move | The entire mobile phone industry supply chain is declining. Morgan Stanley has lowered this year's global smartphone shipment forecast by 15%.
