Nomura: Raises BABA-W (09988) FY2027 adjusted net profit forecast by 7%

Nomura released a research report stating that it expects Alibaba Group Holding Limited Sponsored ADR (09988)(BABA.US)'s upcoming FY2027 second-quarter results to further demonstrate its artificial intelligence (AI) strategic positioning. The bank raised its FY2027 adjusted net profit forecast for Alibaba Group Holding Limited Sponsored ADR by 7%, mainly driven by improved profitability expectations for its e-commerce business. The bank gave Alibaba Group Holding Limited Sponsored ADR a "Buy" investment rating and a target price of US$178. Nomura noted that Alibaba Group Holding Limited Sponsored ADR is further focusing on AI and cloud businesses. After attending Alibaba Group Holding Limited Sponsored ADR's annual Apsara Conference, the bank has greater confidence in the prospects of its AI cloud business. In China's AI ecosystem, few companies can occupy such a solid advantageous position in almost every key link of the AI value chaincovering chips, infrastructure, models, and AI applicationsas Alibaba Group Holding Limited Sponsored ADR does. Nomura's exchanges with Alibaba Group Holding Limited Sponsored ADR further corroborated its view: management has shifted its focus toward the AI cloud business, which is gradually becoming an important engine of revenue growth; at the same time, the company is placing greater emphasis on the profitability of other business segments, aiming to reserve cash flow for investments in the AI field.