CMSC International: Raise target price of BABA-W (09988) to HKD 171, maintain "buy" rating.

CMSC International released a research report, raising the target price of BABA-W (09988) from 165 Hong Kong dollars to 171 Hong Kong dollars, with a potential increase of 33%, maintaining a "buy" rating. The report points out that the group's revenue at the end of March increased by 7% year-on-year, 1% lower than expected. Driven by continuous efficiency improvement, adjusted EBITA increased by 36% compared to the same period last year. The bank lowered its revenue forecast for the 2026/27 fiscal year by 2% due to increased investment in local businesses, and adjusted earnings forecast by 5% and 2% for the 2026/27 fiscal year. The group emphasized the strategic focus on its core business and plans to achieve single-quarter profitability for Alibaba International Digital Commerce Group (AIDC) in the 2026 fiscal year.