<Study>Analyses of Ratings & Target Prices for BABA-W (09988.HK) (Table)

The analyst rating for BABA-W (09988.HK) is influenced by several key factors outlined in the article. Morningstar's report highlights that despite a significant QoQ decline in adjusted EBITA, the management's forecast for the cloud intelligence business indicates a shift from 'accelerating' to 'high' revenue growth. The guidance for customer management revenue aligns with expectations, suggesting stability in that area. Moreover, the broker believes that the company's business possesses a wide moat, indicating a competitive advantage, and that the market is underestimating the management's strong execution and the potential of the cloud business. This combination of factors leads to the conclusion that the company's value is still undervalued, with a fair value estimate significantly higher than the current stock price. Thus, the analyst maintains a positive outlook on BABA-W, reflecting confidence in its long-term growth potential despite short-term challenges.

The analyst rating for BABA-W (09988.HK) is maintained at "Buy" by CMBI due to several factors. The company's revenue for 2FQ26 was RMB247.8 billion, which exceeded expectations, particularly driven by a strong performance in the cloud business, which grew by 34% YoY. CMBI also noted that the company's plan to reduce losses in the instant retail business aligns with market forecasts. Despite a slight decrease in the target price from US$209.4 to US$206.4, CMBI continues to view BABA-W as a core beneficiary in the AI sector, supporting their positive rating.

The analyst rating from HSBC Global Research for BABA-W (09988.HK) is based on the encouraging growth of its cloud business, which accelerated to 34% year-over-year. The report highlights strong demand for AI, which is expected to continue driving robust growth in the cloud sector. The expanding backlog of AI-related demand indicates that demand exceeds supply, suggesting significant growth potential. As a result, HSBC raised its revenue forecasts for the cloud business for FY2026-2028 by 2-6%. Despite minor adjustments to overall estimations, the broker maintained a "Buy" rating and set a target price of US$205 for BABA-W's US stock and $200 for its H-shares.

The analyst rating for Alibaba (BABA-W) is maintained as a "Buy" due to the company's solid 2QFY26 results, which showed a robust core business. The report highlighted a 5% year-over-year increase in total revenue, driven by a 10% increase in China's core e-commerce and a 34% growth in the cloud business. Despite a slight reduction in total revenue forecasts for FY2027-28, the net profit forecast remains largely unchanged, indicating confidence in the company's performance. The target prices set by the broker further reflect their positive outlook on Alibaba's future growth.