JP Morgan: Maintains "overweight" rating on BABA-W (09988) with a target price of HK$200.

J.P. Morgan released a research report stating that they maintain a "overweight" rating for Alibaba Group Holding Limited Sponsored ADR (BABA.US, 09988) stocks in the US and Hong Kong, with target prices of $205 and HK$200 respectively. The bank has lowered the company's total revenue forecast for the 2027 fiscal year by 1% to reflect a weaker macro and consumer environment than expected, but raised its 2028 fiscal year forecast by 3% to reflect the robust growth prospects for cloud businesses. The losses from Alibaba's food delivery and instant retail investments are rapidly narrowing, coupled with accelerated growth in cloud revenue and increased user spending during the Lunar New Year period for Qwen, leading to reduced losses for other businesses by quarter. As a result, the company's adjusted earnings per share forecast for the 2027 fiscal year has been raised by 2%, marking the first upgrade to Alibaba's earnings forecast since May 2025. The bank expects Alibaba's performance in the first quarter of the 2027 fiscal year to exceed market expectations.