Latest Search
Quote
| Back Zoom + Zoom - | ||||
|
<Research>CICC Raises Alibaba Group (BABA.US) TP to US$204, Optimistic About Continued Release of Alibaba Cloud's Commercial Value
Recommend 38 Positive 53 Negative 17 |
||||
|
||||
|
CICC was invited to the 2025 Apsara Conference, where Eddie Wu, CEO of BABA-W (09988.HK) and chairman and CEO of Alibaba Cloud Intelligence Group, mentioned the 3 stages of the artificial superintelligence (ASI) journey, according to CICC's research report. Alibaba Cloud is positioned as a full-stack AI service provider. Wu also announced BABA-W's increased investment in infrastructure. CICC believed that Alibaba Cloud possesses full-stack capabilities in the AI era, including its Tongyi large model, Bailian, PAI and other AI service platforms, as well as China's leading AI infrastructure and computing network. Alibaba Cloud has a leading supply-side advantage and developer stickiness. As AI demand continued to grow, Alibaba Cloud will benefit in various dimensions. The broker was optimistic about the continued release of Alibaba Cloud's commercial value and its ongoing boost to the Company's valuation. CICC maintained its revenue and profit forecasts for BABA-W unchanged. Based on SOTP valuation, a 15x PE ratio for the e-commerce business and a 7x PS ratio for the cloud computing business for FY2027, this corresponds to a target price of US$204/ $197 for BABA-W's US stock/ H-shares, mainly due to positive cloud computing progress and an upward shift in the valuation pivot, representing a 34% and 35% increase from the previous target prices respectively. The broker kept rating at Outperform, with a 24% and 25% upside potential for its current Hong Kong and US stock prices each. AASTOCKS Financial News Website: www.aastocks.com |
||||
Copied to Clipboard
 |
||||
