Goldman Sachs: maintains a "buy" rating on Alibaba-W (09988) with a target price of HK$131.

Goldman Sachs released a research report stating it maintains a "buy" rating on BABA-W (09988) with a target price of 131 Hong Kong dollars. Alibaba's quarterly performance was weak, but overall met expectations. The slight negative reaction in the stock price was mainly due to lower than expected GMV growth for Taobao-Tmall, and the widening decline in EBITA for Taobao-Tmall and the group on a quarterly basis. However, Alibaba's management guidance for the third quarter is relatively optimistic. Therefore, Goldman Sachs expects Alibaba's CMR growth in the third and fourth quarters to accelerate to 5.4% and 6.2%, compared to previous forecasts of 4.6% and 5.7%. Goldman Sachs also mentioned that the growth of Alibaba Cloud has further improved, and has raised the EBITA profit margin forecasts for Alibaba Cloud in the third and fourth quarters to 9.5% and 9.3% respectively. The EBITA forecasts for Taobao-Tmall in the third and fourth quarters have been adjusted to a 3% decrease and a 1% increase, compared to previous forecasts of a 2% decrease and 0%. Additionally, Goldman Sachs has lowered its revenue forecasts for Alibaba for the fiscal years 2025 to 2027 by 1%, and has also revised its net profit forecasts down by 1% to 2%.