JP Morgan reiterates "overweight" rating on Alibaba-SW (09988) and raises target price to HK$120.

J.P. Morgan released a research report stating that it has raised the target price of Alibaba-SW (09988) from 117 Hong Kong dollars to 120 Hong Kong dollars, an increase of 3%, and maintained a "overweight" rating. The bank believes that profit growth is a natural byproduct of stable market share and business improvement driven by cost control and various long-term growth drivers. The bank predicts that Alibaba's revenue for the fiscal year 2025 will increase by 8% year-on-year, 1% higher than the market's general forecast, and expects adjusted net profit to increase by 14% year-on-year, 15% higher than the market forecast. J.P. Morgan estimates that Alibaba's announcement of the sale of Intime and SUNART RETAIL (06808) will lead to a decrease of 18% and 10% in total revenue for Taobao Group (TTG) and Alibaba in the fiscal year 2026, but will increase adjusted profits for Taobao Group and Alibaba.